SINGAPORE: Brent oil may retest 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 $58.84 or $63.08. The bounce on Tuesday is classified as a part of the consolidation from the May 7 low of $67.39.

A break above $69.17 could lead to a gain to $69.95. A further gain could confirm the continuation of the uptrend towards $71.38. On the daily chart, signals are a bit mixed, while oil is consolidating around $68.43.

Wave pattern suggests a downside bias. The resistance at $70.75 triggered a decent correction on March 8. It may cause a shallower one this time.

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