Brent oil may retest a support at $91.78 per barrel, with a good chance of breaking below this level and falling into $88.56-$90.17 range.
A five-wave cycle from $87.24 has peaked around $95, as confirmed by its wave structure and the fall on Tuesday. The fall consists of at least three waves.
The wave b seems to be ending around $93.77.
It will be totally reversed by a downward wave c. A break above $93.77 may lead to a gain into $95-$96.04 range. The five waves from $87.24 look impulsive.
They suggest the development of a zigzag which means the uptrend from $87.24 may extend upon the completion of the wave c.
However, such an uncommon wave pattern sometimes does appear with a one-shot bounce. The confusion could be cleared when all these small movements are zoomed out on the daily chart.
The bounce over the past few days is regarded as a pullback towards a bearish triangle, which suggests a target of $67.75.
Brent oil may end bounce below $93.77
Following the small white candle on Monday, a similar black candle appeared on Tuesday.
Together, they indicate a dissipation of the bullish momentum.
A downward wave (C) from $125.19 could be resuming towards $83.63.
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