Brent oil may test a resistance at $94.81 per barrel, a break above which could lead to a gain to $96.85.
The contract has found a strong support around $91.70, the 61.8% projection level of a downward wave (C) from $110.67.
This is the second time that this wave failed to overcome this key barrier.
Its first failure on Aug. 17 was followed by a strong bounce to $105.48.
A weaker bounce may have just started. It is not very clear how high the current bounce could extend. Immediate target zone is from $94.81 to $96.85.
Brent oil may fall towards $91.51-$93.41 range
A break below $91.70 could confirm the continuation of the wave (C) towards $87.22.
Working together with the support at $91.70 is another one at $93.44 on the daily chart. Following three days’ sharp drop, market may take a break, to consolidate around $93.44 for a few days.
The consolidation will be followed by another round of deep drop towards $83.63.
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