SINGAPORE: US oil may test support of $68.85 per barrel, a break below which could open the way towards $67.48. The drop closely observes a set of projection levels on the rise from $67.48.

After a brief bounce on May 12, oil broke the support at $70.39 and is heading towards the next support of $68.85.

The uptrend from $63.64 consists of three waves. A wave b ended at $67.48, which serves as a target as well.

A break above $70.39, now a resistance, may lead to a gain into the $71.47-$71.93 range. On the daily chart, a bounce triggered by the support zone of $62.89-$64.42 may have ended.

US oil may test support of $69.85

Oil may revisit this zone.

This bounce looks much weaker than the one from the March 20 low of $64.12. Such a relation suggests a prevailing bearish sentiment.

The lower oil drops, the less likely a double-bottom forms around $64.