SINGAPORE: US oil may retest a support at $66.11 per barrel, a break below which could be followed by a drop to $65.24.

The contract is riding on a wave C, which may have completed its first part around a resistance at $67.57. Five smaller waves make up this part.

The wave iv ended around $65.24, which works as a target for the current correction. A retracement analysis suggests a target zone of $64.54-$65.24.

A break above a resistance at $67.10 may signal a continuation of the uptrend. On the daily chart, oil has pierced above a resistance zone of $65.65 to $66.60.

It is quite certain that the contract could break this zone and rise towards $71.93.

Before the surge, oil could experience the last correction towards $65.65.

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