Brent oil may test resistance at $71.98

• Brent oil may test a resistance at $71.98 per barrel.
• The fifth wave labeled 5 has extended.
• It is expected to test a resistance zone of $72.01-$72.66.

SINGAPORE: Brent oil may test a resistance at $71.98 per barrel, a break above which could lead to a gain to $73.97.

The resistance is identified as the 138.2% projection level of an upward wave C from $60.30. This wave consists of five smaller waves. The fifth wave labeled 5 has extended.

On the daily chart, oil has broken a resistance at $68.99, the 50% projection level of a wave c from $56.15. It is expected to test a resistance zone of $72.01-$72.66. A bullish target at $81.82 will be established once oil stands firm above this zone.