Brent oil may retest $92.53 after shallow drop

Brent oil may retest a resistance at $92.53 per barrel, probably after a correction to $90.51.

The rise from the Monday low of $88.50 is presumed to be driven by a wave C, the third wave of a three-wave cycle from $87.24.

This wave may either end around $93.79 or extend to $97.06. Before retesting $92.53, oil may retrace to $90.51.

The retracement is expected to roughly mirror the move on Friday.

A break below $90.51 may signal the continuation of the downtrend towards $88.50. A break above $92.53 could lead to a gain to $93.78.

Brent oil may extend gains to $93.78

On the daily chart, the pattern from the Sept. 8 low of $87.24 looks like a small high-low bottom.

How reliable this pattern is will largely depend on the move on Tuesday.

A fall below $89.28 could make this bottom invalid. After all, the downtrend remains steady, which may extend to $83.63.

The small high-low bottom is considered as a part of the consolidation triggered by the support at $89.28, instead of a reversal pattern.