SINGAPORE: Brent oil may retest a resistance at $72.71 per barrel, a break above which could lead to a gain into $73.38-$73.80 range.

The market seesawed on Thursday. The drastic move could have been driven by a wave 4, which will be reversed by an upward wave 5.

The wave 5 is expected to be roughly equal to the wave 1, to travel to $74.47. A break below $71.62 again will confirm a small double-top around $72.71, a bearish target of $70 will be established then.

On the daily chart, the uptrend remains intact and is extending towards $75, as suggested by a confirmed wedge.

A rising trendline points at a much higher target of $85.17.

Key support is at $70.75, a break below which could signal the completion of the rise from the May 21 low of $64.57. Oil is highly likely to retreat towards $68.43 thereafter.

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