SINGAPORE: US oil may break a resistance at $66.70 per barrel, and rise to the March 8 high of $67.98.

The rise from $59.24 to $67.98 adopted an impulsive wave mode, while the fall from $67.98 adopted a corrective mode.

This structure suggests an extension of the rally above $67.98.

After a flat consolidation around $65.92, the contract has resumed its rally towards $67.98. Strategically, this target will be confirmed when oil breaks $66.70.

Key support is at $65.41, a break below which could be followed by a drop into the $63.61-$64.64 range.

On the daily chart, a wave C from $51.64 has resumed, after being disrupted by a resistance zone of $65.65-$66.60.

This wave is capable of travelling to $71.93.

Bulls may have accumulated enough momentum from the shallow correction from the March 8 high of $67.98. They are poised to break the resistance zone and push the price higher.

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