SINGAPORE: Brent oil may rise into a range of $69.26-70.07 per barrel, as it has stabilized around a support at $67.94.

The support is provided by the 38.2% retracement of a five-wave cycle from $62.38. The first round of the drop from $71.38 may have completed, oil is expected to bounce towards the target range.

A more bullish scenario is the uptrend from $62.38 has resumed towards $71.38.

A break below $67.94 could cause a fall into $65.82-$66.88 range.

On the daily chart, the deep fall on Monday was due to a resistance zone of $70.75-$71.75.

It is a healthy correction against the linear rise from March 3 low of $62.38.

Based on a projection analysis, oil is likely to extend its gains into a range of $77.96-$85.17, as it has surged far above a key barrier at $66.29, the 100% projection level of an upward wave C from $35.74.

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.