SINGAPORE: US oil may break a resistance at $66.15 per barrel and rise to $67.48, based on its strong momentum.

The rise from the Monday low of $61.74 was much stronger than expected. It signals a completion of a wave c from $69.62 and a corrective wave cycle from the July 6 high of $76.98.

Oil could be rising towards the peak of a wave b at $69.62 or the peak of the wave (b) at $74.21. A falling channel indicates a target of $71, which is between these peaks.

It is not very clear if a correction would be triggered by the resistance at $66.15. Such a correction may be limited to $65.08.

On the daily chart, a bullish engulfing pattern confirmed a reversal on the downtrend from $74.23.

It also indicates a further rise on Tuesday.

Given that oil has broken a resistance at $64.79, it is expected to rise into $67.12-$69.44 range.

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