Brent oil’s October contract may retest a support at $98.44 per barrel, a break below which could cause a fall into $96.70-$97.54 range.
The bounce triggered by the support on Tuesday is classified as a pullback towards a rising trendline.
The pullback has ended near a resistance at $102.68. The downtrend seems to have resumed, which is expected to extend to $96.70 or far below this level. A break above $101.26 may lead to a gain to $102.68.
On the continuous chart, oil found a temporary support at $98.32.
The consolidation above this level may be short-lived, as a bearish target of $94.50, the July 14 low, has been established.
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On the daily chart, the drop from the July 29 high of $110.67 confirmed a continuation of the downtrend from $125.19, even though the drop was largely due to a monthly spread.
The trend is riding on a wave c, which could travel to $83.63, the 100% projection level of a bigger wave (C).
A realistic target will be $94.50 or $93.44.
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