SINGAPORE: US oil may seek a support around $67.34 per barrel and start a decent bounce.

The downtrend is riding on a wave (c) from $74.23. This wave is expected to travel into a big range from $62.70 to $67.10. In addition to the set of projection levels, the fall observes closely a set of retracements on the rise from $65.21 to $74.23 as well.

Given that oil has broken a support at $68.66, it may drop more towards $67.34. The current minor bounce is classified as a pullback towards $68.66.

Crude oil demand: jittery road to recovery

On the daily chart, a rising trendline points at a target of $66.44. The contract is expected to eventually fall to this level.

The uptrend will be deemed intact, if oil manages to hover above $66.44. A break may signal a reversal of the uptrend from $33.64.

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