SINGAPORE: US oil may retest a support at $66.96 per barrel, a break below which could cause a fall to $65.24.

The contract failed twice to break a resistance at $68.35 per barrel.

The failures suggest the formation of a top around $68.35. It also triggered a pullback towards a falling trendline which establishes a support around $65.24.

A break above $68.35 could confirm the extension of the uptrend towards $69.73-$71.45 range. On the daily chart, oil is consolidating around a support at $67.12. The consolidation may take few days to complete.

The contract is riding on a wave b, which could be sharp or sideways. A sharp wave b could travel quickly to $64.79, while a sideways wave b may develop around $67.12. Signals on the hourly chart suggest a drop towards $64.79.

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