SINGAPORE: US oil may retest a resistance at $68.99 per barrel, a break could lead to a gain to $69.96.
The contract is riding on a wave C from $61.56. This wave is capable of travelling to $71.28. So far, it has been well controlled by a set of projection levels.
The wave C has a fierce character. It is not supposed to be disrupted by any deep correction.
The correction triggered by the resistance at $68.99 looks a bit exceptional. However, it may have completed around $67.57.
A break below $67.57 could open the way towards $66.42.
On the daily chart, oil has broken a wedge, which suggests a target around $75.
A realistic target will be $71.93. The former resistance zone of $65.65-$66.60 works as a strong support and a limit to a possible pullback towards the wedge.
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