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US oil may retreat into $68.51-$68.99 zone before rising

SINGAPORE: US oil may retreat into a support zone of $68.51 to $68.99 per barrel, and resume its uptrend thereafter.

A wave (3) could have peaked at the June 9 high of $70.62. It will be further reversed by the current wave (4). The former wave iv of a lower degree ended at $68.51, which works as a target for the wave (4).

However, this wave (4) is expected to be shallow. It may end around $68.99 as well. A break above $69.96 could signal the continuation of the uptrend towards $71.28.

On the daily chart, the uptrend remains intact, as a bullish triangle suggests a target around $75.

Wave pattern indicates the progress of a big wave C from $51.64, which may extend into a higher target zone of $79.68 to $84.47.

Oil is yet to pull back towards the wedge. This pullback may be triggered by a strong resistance at $71.93.

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.

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