SINGAPORE: Brent oil may retest a support at $67.94 per barrel, a break below could open the way towards $66.88.

Following its failure to break a resistance at $70.07, oil fell deeply.

The fall signals an extension of the correction from $71.38.

Three waves may make up the correction.

The third wave labelled c is unfolding towards the bottom of the wave at $66.50, the March 10 low.

Resistance is at $69.26, a break above could lead to a gain into $70.07-$71.38 range.

On the daily chart, the resistance at $71.75 - the Jan. 8, 2020 high, is much stronger than expected.

The consolidation below this barrier may take a longer time to complete.

Despite this consolidation, the uptrend looks intact. It may extend into a range of $77.96 to $85.17.

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