SINGAPORE: US oil looks neutral in a range of $70.79-$72.39 per barrel, and an escape could suggest a direction.

The contract failed twice to break a resistance at $73.38.

The failures suggest the formation of a flat or double-top.

The former would mean a completion of the correction around $70.79 while the latter suggests a deep drop towards $67.20.

A break below $70.79 is likely to be followed by a drop to $69.80. The double-top will be confirmed once oil falls to this level.

A break abve $72.39, which seems unlikely, would open the way towards $73.38-$74.98 range.

On the daily chart, oil failed a few times to break a resistance at $73.13.

The multiple failures suggest the completion of a pullback towards the rising trendline.

Oil may drop into the support zone of $67.03-$69.36.

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