U.S. oil NYMEX:CL1! may retest support at $67.34 per barrel, a break below which could trigger a decline into the $65.29-$66.35 range.
The bounce triggered by the support is classified as a pullback toward a wedge. The downtrend remains intact and is expected to extend to $63.58, as indicated by a projection analysis of the decline from $95.44.
A break above $69.13 may lead to a gain toward the $69.99-$70.85 range. On the daily chart, the market has broken support at $70.52. The break opened the way toward $64.07.
A projection analysis on the downward wave C from $109.54 marks a lower target at $57.98, the 138.2% level.
* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - a London Stock Exchange product.
** 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.