Brent oil may test a support at $87.76 per barrel, a break below which could open the way towards $86.42-$86.93 range.
The bounce from $84.26 was driven by a wave c, which ended around its 161.8% projection level.
A falling trendline remains intact, signalling a steady downtrend from the Sept. 14 high of $95.80.
Oil is expected to fall towards $84.26 over the next few days. Resistance is at $89.10, a break above which could lead to a gain into $89.51-$90.43 range.
On the daily chart, the rise from the Sept. 26 low of $83.65 was due to a support at $83.63.
Brent oil may retest resistance at $89.51
The rise is classified as a pullback towards $89.28.
The doji forming on Thursday suggests a completion of the pullback.
The downtrend is expected to resume towards $83.63.
It is not very clear if the support could trigger the second bounce.
Most likely, it would, as the projection analysis indicates that this is a key barrier.
Market may consolidate above this support for some time before falling again.
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