The downtrend from the April 25 high of $75.60 has resumed. Driven by a wave (c), the trend may extend into a range of $66.59-$69.19, formed by its 100pc and the 61.8pc projection levels.

A retracement analysis on the uptrend from $49.93 to $75.60 reveals a target at $69.54, the 23.6pc level.

The 7pc level at $73.80 works as a strong resistance, around which, the bounce from the May 6 low of $68.79 ended.

The pattern from $75.60 looks like a flag, which will be confirmed when oil falls below $70.80.

It suggests a target around $66.59 as well. Resistance is at $73.40, a break above which could lead to a gain to $75.60.

On the daily chart, oil failed to break a resistance range of $72.66-$73.02, formed by the 23.6pc retracement of the uptrend from $27.10 to $86.74 and the 7pc projection level of a downward wave (C) from $75.60.

It is expected to fall towards $70.23.

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Wang Tao is a Reuters market analyst for commodities and energy technicals.

The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.