Brent oil may fall into a range of $84.06 to $84.77 per barrel, following the weird surge from the March 3 low of $82.36.
The surge was probably driven by a wave e, the fifth wave of a five-wave cycle from $80.40. It is the final wave of this cycle.
In view of the zigzagging rise from this low, the surge simply looks out of tune and may not be able to keep its momentum. It is subject to a correction, which may have been triggered by a key resistance at $85.91.
The pattern from $80.40 looks like an expanding wedge, which is by nature a bearish continuation pattern, to be followed by a round of drop. It will be confirmed only when oil breaks $82.92.
A break above $85.91 could lead to a gain into $86.34-$84.05 range.
Brent oil may revisit Feb. 24 low of $81.07
On the daily chart, the long-shadowed candlestick on March 3 could be regarded as a hanging man, which indicates a completion of the bounce from around $80.72.
A break above $86.54 could lead to a gain into $89.28-$93.44 range.
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