It looks like the rally in oil might be over as the black gold is down for three days, losing more than 6% since Monday’s open and trading below the important 70 USD level.
Oil seems to be heading toward the major medium-term uptrend, currently near 68 USD. This trend line has been tested three times in the previous months, and it has already sent the commodity higher.
If that support fails to hold, it could mean the medium-term uptrend might be over. So the next target for bears would be at 66 USD, or possibly the 62 USD zone.
Alternatively, if the mentioned trend line will be defended, the first strong resistance might be expected near the psychological level of 70 USD.
Another selling area could be at 70.70 USD.
For the near future, the key development will be at the 68 USD support, for if bears push oil below that support, it could lead to a trend reversal.