SINGAPORE: Brent oil may test a resistance at $69.87 per barrel, a break above could lead to a gain to $71.38.

The contract has broken a lower resistance at $68.76, the key barrier towards $71.38. Given that the downtrend from $71.38 has been so much reversed, chances are that this high will be revisited.

It is critical that oil hovers above $68.76, as a break below could be followed by a deep fall to $67.14.

On the daily chart, oil has broken a resistance at $68.43. It is expected to travel into $70.75-$73.50 range.

The waves on the trend from $35.74 have been relabelled.

Based on this alternate wave count, oil could be riding on a wave 3, which could drive the price to an unbelievable high.

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