SINGAPORE: Brent oil may bounce to $67.89 per barrel, as it has broken a resistance at $66.43.

The contract found a strong support at $65.26 which triggered the current bounce. Based on the sideways nature of the recent move, the bounce may extend, as it followed a sharp fall from $70.24.

Increasing the chance of a further bounce is the incomplete wedge, which is still contracting towards a point. A break below $66.43 could open the way towards $64.08-$65.26 range.

On the daily chart, oil briefly pierced below a support at $66.29. It is managing to stabilize around this level. Eventually, it may break this support and fall into $62.14-$64.15 range.

The pattern from the March 8 high of $71.38 may turn out to be double-top or a flat or a triangle. It is still too early to confirm any of them.

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