- The third leg of the correction may have just started.
SINGAPORE: Brent oil may revisit its Monday low of $66.10 per barrel, as suggested by its wave pattern.
A five-wave cycle from March low of $60.27 has reversed. A retracement analysis on the part of this cycle from $61.25 reveals a target zone of $64.19-$65.10.
The bounce on Monday was due to a support at $66.01.
It seems the bounce is ending around a resistance at $67.83.
The bounce could have been driven by a wave (b), which will be reversed by a downward wave (c).
A break above $67.83 could lead to a gain into $68.41-$68.95 range. On the daily chart, oil tends to fall towards the lower channel line which establishes a support around $65.
The rise from the March 23 low of $60.27 is still classified as a part of the correction from the March 8 high of $71.38.
The third leg of the correction may have just started.
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