SINGAPORE: Brent oil may break a support at $62.89 per barrel and fall into a range of $61.05 to $61.89.

A bounce from $60.27 has completed. It consists of three waves.

The second wave labelled b ended around $61.05, which may be revisited.

Indeed, the downside may not be limited to $61.05, as the downtrend from $71.38 may have resumed. Under this bearish scenario, oil could travel far below $60.27.

Resistance is at $63.98, a break above which may lead to a gain into $64.51-$65.83 range.

On the daily chart, the correction from $71.38 has been controlled by a set of retracements of the uptrend from $49.20 to $71.38.

Three waves make up the correction. The current wave c is unfolding towards a support zone from $57.67 to $60.29.

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