SINGAPORE: Brent oil is expected to test a resistance at $68.86 per barrel, a break above which could lead to a gain to the next resistance at $69.70.
These resistances are identified respectively as the 23.6 percent and the 14.6 percent retracements of the uptrend from $61.77 to $71.05.
The target at $66.41 based on a head-and-shoulders developing between March 21 and April 2 was narrowly missed. The following decent recovery of the price from the April 4 low of $66.69 signals a completion of the drop from $71.05.
It is not very clear if oil could break above $68.86 at its first attempt. A failure could cause a loss towards $67.51. Once oil breaks below this level without testing $68.86, the target at $66.41 will be resumed.
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Source: Brecorder
