SINGAPORE: Brent oil may retest a resistance at $73.80 per barrel, a break above could lead to a gain at $74.47.

The shallow correction triggered by this resistance is regarded as a pullback towards a former resistance at $72.71, now a strong support.

Wave pattern suggests the progress of a wave 5, which is expected to be roughly equal to the wave 1, to travel to $74.47.

In commodity market, the fifth wave often becomes extended. Under this scenario, this wave may travel to $75.55.

A break below $72.71 may cause a fall to $72.08. On the daily chart, the uptrend remains intact and is extending towards $75, as suggested by a bullish wedge.

Oil is testing a resistance at $73.50 (close to $73.80 on hourly chart), which is partially responsible for the shallow correction on Monday as well.

A failure to overcome this barrier may be followed by a pullback towards the wedge.

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