SINGAPORE: Brent oil may test a support at $67.66 per barrel, a break below which could cause a fall into $66.44-$67.20 range.

The contract failed to break a resistance at $69.03. The failure signals a reversal of the uptrend from March low of $60.27.

The trend could be broken down into five waves, most of which unfolded in a rising wedge.

The resistance is strengthened by another one at $68.76, the 76.4% retracement of the downtrend from $71.38 to $60.27.

It will be very difficult for oil to break these resistances. A break may lead to a limited gain to $69.65.

On the daily chart, the consolidation from $71.38 will not be considered complete until oil goes above this level, as this consolidation is expected to consist of three waves. So far, only two have unfolded.

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