The resistance was provided by the 23.6pc  retracement on the downtrend from $75.60 to $67.02.

Three waves make up the trend.

A projection analysis reveals that the third wave labelled a is roughly equal to the first wave labelled a.

Such a relation confirms the completion of the first part of a medium-term downtrend from $75.60.

The current bounce may extend into a range of $70.30-$72.32, formed by the 38.2pc  and the $61.8pc  retracements.

Support is at $68.27, a break below which may cause a loss to $67.02.

On the daily chart, oil has stabilized around a support at $66.91, the 23.6pc  projection level of a downward wave (C) from $75.60. It may edge up to a resistance at $70.23.

The wave (C) is capable of travelling into the range of $52.85-$61.54.

The current weak bounce is regarded as a prelude to a deep fall towards the target range.

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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.