Brent oil still targets its Monday low of $88.50 per barrel, as the bounce from this level has been deeply reversed. The market eased and slid its way towards $88.50.
A downward wave C is driving the trend towards its 61.8% projection level of $84.55.
A realistic target is $86.70, which will be confirmed when oil falls below $88.50.
Immediate resistance is at $90.22, a break above may lead to a gain into $91.29-$92.15 range. On the daily chart, bulls bluffed their way, briefly past a resistance at $92.09.
The outcome was pretty disappointing, as oil closed far below this level on Wednesday.
Fed’s decision on rate hike did not fuel the downtrend as much as expected. Market seemed to have fully digested this piece of news.
The missing impact may show itself over the next few days, as both a bearish triangle and a projection analysis on a wave (C) from $125.19 suggest a deep drop from the current level.