SINGAPORE: Brent oil may retest a support at $74.34 per barrel, a break below which could cause a drop into $72.55-$73.54 range.

The deep fall on Tuesday signals a reversal of the uptrend from $64.57, which could be well broken down into five waves.

The fall observes a set of retracements on the rise from $70.95.

The support at $74.34 triggered a pullback towards a rising trendline. The pullback may end around $75.14, to be followed by a resumption of the downtrend.

A break above $75.14 could lead to a gain to $76.13. On the daily chart, the correction could be extending towards the lower channel line, as it is expected to be as deep as the one from the May 18 high of $70.24.

The correction may at least last two days. The uptrend from $60.27 still remains intact. It may resume when the current correction ends in the zone of $70.75-$73.50 range.

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