SINGAPORE: Brent oil may test a resistance at $70.07 per barrel, a break above could lead to a gain to $71.38.

The uptrend from $62.38 adopted a five-wave mode, while the drop from $71.38 is a corrective mode.

This structure suggests an extension of the uptrend above $71.38.

With the drop from $71.38 having been deeply reversed, the uptrend may have resumed. Support is at $69.26, a break below could cause a fall to $67.94.

On the daily chart, oil completed a pullback towards a support at $66.29, the 100% projection level of a an upward wave C.

This wave is likely to extend its into a range of $77.96 to $85.17. Following its failure to break $71.75, the Jan. 8, 2020 high, oil is poised to retest this level.

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