Brent oil may extend rally to $70.77 - Reuters News

A Reuters technical report says Brent oil is likely to cut through resistance at $70.30 and extend the rally to $70.77 levels. 

Key points

• A small five-wave cycle from $67.26 is still developing. The cycle is part of a bigger wave 3, which may extend to $70.77, its 186.4 percent Fibonacci projection level, as pointed by a rising trendline.
• Another projection analysis on the daily chart reveals a higher target $71.37, the 86.4 percent level of an upward wave C.
• This wave C is capable of travelling to $75.62. Support is at $69.61 (first chart), a break below which could cause a loss to $69.06.