SINGAPORE: US oil may drop into a range of $67.27-$68.09 per barrel, due to the completion of a five-wave cycle from $64.12.

The completion followed the second failure of the contract to break a resistance zone of $70.55-$70.80.

The current fall could be limited to the range of $67.27-$68.09, as the five-wave structure from $64.12 indicates the formation of a zigzag.

Three waves make up the pattern.

The wave a has completed, while the wave b is still unfolding.

The third wave, the wave c, is expected to travel towards $72.37-$72.53. Resistance is at $70.80, a break above which could lead to a gain to $74.32.

On the daily chart, oil failed to break a resistance at $71.76.

US oil may test support at $69.22

The failure is likely to be followed by a drop to $67.33.

The contract is expected to consolidate in the range of $62.89-$71.76 for one or two weeks before heading towards $57.41.