SINGAPORE: Brent oil may test a support at $62.65 per barrel, a break below which could open the way towards $61.09.

Undoubtedly, the current fall is against a five-wave cycle from $54.48. A retracement analysis on the cycle reveals a target zone of $61.09-$62.65, formed by the 50% and the 38.2% levels.

There is a congestion area around $62.65 between Feb. 19 and Feb. 22.

Chances are oil may fail to break $62.65 in its first attempt, as a consolidation may occur around this level.

Resistance is at $63.63, a break above which could lead to a gain into $64.07-$64.58 range.On the daily chart, oil failed to break a falling trendline.

This is a major failure of bulls, as the trend from $35.74 may have reversed.

The trend was driven by a wave C that may have completed around $66.29, its 100% projection level.

Oil may retreat into $59.08-$62.14 range.

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