Brent oil may test support at $66.40
Brent oil may test a support at $66.40 per barrel, with a good chance of breaking below this level and falling into the range of $65.64-$66.09.
The support is identified as the 86.4% projection level of an upward wave c from $63.76. This wave could have peaked around $67.53. The developing wedge looks like a top pattern, which suggests a target around $65.64.
A rise above $67, however, could confirm the wedge as a bullish continuation pattern, and a target at $67.98 will be established accordingly.
On the daily chart, oil is expected to pull back towards a former resistance at $65.79, the 38.2% retracement on the uptrend from $49.93 to $75.60.
