SINGAPORE: Brent oil still targets $67.14 per barrel, as it has broken a support at $68.76.

The failure of the market to break a resistance at $69.87, along with the subsequent deep fall, suggests the completion of a wave (c) from $61.25.

This is the second wave of a presumed three-wave cycle from $71.38.

The third wave may have just started, unfolding towards a range of $64.51-$65.83, as pointed by the lower trendline of a wedge.

A break above $68.76 may lead to a gain into $69.37-$69.87 range.

On the daily chart, a wave 2 is developing, which is the second wave of a five-wave cycle from $35.74.

Three smaller waves make up the wave 2. Based on the strength of the wave b, the current wave c could be very short.

A very powerful wave 3 could start around $64, and drive the price far above $71.

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