US oil may retest a support at $65.46 per barrel, with a good chance of breaking below this level and falling to $64.27.
The contract is riding on a wave (c) from $74.23, which observes closely two sets of projection levels on the downtrend from $75.52 and the trend from $74.23.
This wave is expected to travel to $62.70, as it has extended below $65.42. The current bounce may end around a resistance at $67.10, as indicated by a falling channel. A break above $67.10 could lead to a gain to $67.83.
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On the daily chart, the contract has deeply pierced below a rising trendline and a support at $66.44. Both the trendline and the support look vulnerable.
The reversal of the uptrend from $33.64 has been more or less confirmed. A retracement analysis on the trend suggests a target zone from $55.31-$60.42.
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. Mr Raja said.
