SINGAPORE: Brent oil may retest a resistance at $71.38 per barrel, a break could lead to a gain to $72.71.

The contract is believed to be riding on a powerful wave (3), which is travelling towards a range of $74.47-$75.55, formed by the 138.2% and the 161.8% projection levels of a wave C from $68.11.

A wedge has been confirmed as a bullish continuation pattern, suggesting a target around $75 as well.

The shallow correction triggered by the resistance at $71.38, the March 8 high, could be regarded as a moderate pullback towards the wedge.

Support is at $69.87, a break below which could cause a fall limited to $69.20.

On the daily chart, oil briefly pierced above a resistance at $70.75.

After many failures, the contract is expected to overcome this barrier in its current attempt and rise towards $77.96-$85.17.

A realistic target could be $73.50, which is close to the zone of $74.47-$75.55 (hourly chart).

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