SINGAPORE: Brent oil still targets a range of $65.22-$65.73 per barrel, as it failed to break a strong resistance zone of $66.80-$67.14.

The failure suggests a completion of the rally from $61.25, which had been driven by a wave B, the second wave of presumed three-wave cycle from $71.38.

This wave may be reversed by a downward wave C. There is a slim chance of the contract to break the zone as indicated by the bearish divergence on the hourly RSI.

A break above $67.14 could open the way towards $67.66-$68.42 range.

On the daily chart, oil may retreat towards $62.91 even if the uptrend has resumed, as the trend seems to be developing within a rising channel.

Despite its strength, the rise from the March 23 low of $60.27 is regarded as a part of the correction from $71.38.

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