SINGAPORE: Brent oil may retreat to $69.87 per barrel, due to the completion of a five-wave cycle from $68.11. The uptrend remains intact, as the retracement is driven by a corrective wave (3)-2, which may end near the bottom of the wave 4 around $69.87.

This retracement could also be classified as a pullback towards the March 8 high of $71.38.

A powerful wave (3)-3 is expected to start upon the completion of the wave (3)-2. Eventually, the uptrend may extend into $74.47-$75.55 range.

On the daily chart, the break above a resistance at $70.75 turned out to be invalid. The contact could be pulling back towards the uptrend trendline of a wedge.

The pattern suggests a target around $75 which will be available only when oil completes the current correction and stands firm above $70.75.

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