SINGAPORE: Brent oil may test a support at $67.33 per barrel, a break could be followed by a drop to $65.71.

The drop from the May 5 high of $69.95 may have been driven by a wave C, the third wave of a three-wave cycle from the March 8 high of $71.38.

This wave could travel to a wide range of $58.84 to $63.08. Based on the strength of wave B, the wave C could be much weaker than the wave A, to end around $63.08.

Only a rise above $69.17 could indicate the continuation of the uptrend towards $71.38.

On the daily chart, the gain on Monday proved to be a short-lived bluff by bulls. Market sentiment looks mixed, while oil is consolidating around $68.43.

The longer it remains sideways around this level, the more likely it would fall towards the range of $64.15-$66.29.

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