SINGAPORE: Brent oil may retest a support at $72.39 per barrel, with a good chance of breaking below this level and falling to $71.16.

The deep drop on Monday confirmed a reversal of the uptrend from $67.44. The real starting point of the drop is fixed at $76.38, the July 30 high, which is around the peak of a wave b.

Oil could be riding on a wave (c), the third wave of a three-wave cycle from the July 6 high of $77.84. Such a wave count suggests that the downtrend from $77.84 has extended.

Brent oil may edge up to $75.36

A projection analysis reveals a target zone from $65.96 to $69.93. The current weak bounce may end around a resistance at $73.93.

On the daily chart, the contract has broken a support at $73.50. The break opened the way towards $68.43-$70.75 range. The big black candlestick suggests a further drop on Tuesday.

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