SINGAPORE: US oil may fall more into a range of $68.19-$68.99 per barrel, following the completion of a bounce from the Dec. 2 low of $62.43.

The bounce adopted a zigzag mode, consisting of three waves.

The equality of the wave a and the wave c exhibits the main characteristic of this wave pattern.

The drop on Thursday confirms the completion of the wave c and the zigzag. Resistance at $71.47, a break above which could lead to a gain into $72.39-$73.38 range.

An inverted head-and-shoulders suggests a target around $76.59, which has to be aborted. It will only be resumed when oil climbs above $73.38.

On the daily chart, the rise from the Dec. 2 low of $62.43 looks like a pullback towards an ascending trendline.

With this pullback ending around a resistance at $73.13, oil is expected to revisit the Dec. 2 low of $62.43 over the next one or two weeks.

A break above $73.13 could confirm the extension of the bounce towards $79.23.

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