SINGAPORE: US oil may retest a support of $65.13 per barrel, a break below which may open the way towards $61.32-$62.77 range.

The consolidation from the March 15 low of $65.65 has taken the shape of an expanding wedge, which is classified as a continuation pattern, as it appeared after a deep drop.

This pattern is the prelude to another round of deep drop, which is expected to extend into the range of $61.32-$62.77, as revealed by a projection analysis.

Oil briefly pierced below the lower trendline of the wedge on March 17.

This move gave away the true intention of the market: to drop towards $61.32.

Oil prices settle down, post big weekly losses on banking fears

The current bounce triggered by the support at $65.13 is regarded as a bluffing of bulls, who may surrender very soon.

A break above $67.49 may lead to a gain limited to $68.94. On the daily chart, a bearish flag points firmly at a target around $57.

A projection analysis on the wave C from $123.68 marks a nearer target of $62.89.

The short-lived consolidation around the support of $67.33 may have ended, following the drop on March 17. Oil is poised fall into $57.41-$62.89 range.