SINGAPORE: US oil is biased to revisit its May 15 low of $69.41 per barrel, following its two failed attempts to break a resistance at $71.85.

The failures suggest that the rise from $69.41 could just be a weak bounce against the fall from the May 10 high of $73.89.

The rise was thought to be riding on a wave c, which is capable of travelling above this high. Signals could be rather mixed, as long as the contract stays in the zone of $69.41-$71.83.

US oil may test support of $68.85

A break above $71.83 could lead to a gain to $73.33. A drop below $69.41 will confirm the continuation of the downtrend towards $67.29.

On the daily chart, the contract has stabilised around a support of $70.02. Oil is highly likely to consolidate around this level.

It is still hard to tell if the consolidation ends up with a gain to $75.62.

A further development is needed to evaluate the next direction.