SINGAPORE: US oil may retest a support at $66.11 per barrel, a break below which could cause a drop to $65.24.

A five-wave cycle from $61.56 has completed at the May 28 high of $67.52. The wave iv ended around $65.24, which works as a target for the current correction.

A retracement analysis suggests a target zone of $64.54-$65.24.

Until oil breaks a key resistance at $67.57, the correction target of $65.24 will remain intact.

A break, however, could signal the continuation of the wave C towards $71.28.

On the daily chart, oil has more or less broken a resistance zone of $65.65 to $66.60.

It may consolidate around this zone for one or two days before surging towards $71.93.

A bullish wedge has been almost confirmed, suggesting a higher target of $75.

The contract is expected to close much higher at the end of this month.

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