Brent oil may retrace to $96.82

Brent oil may retrace to $96.82 per barrel, following its failure to break a resistance at $98.41.

A small five-wave cycle has completed around this resistance.

The cycle is expected to be further reversed.

The following drop could be classified as a pullback towards $95.80, the Sept. 14 high.

Even though RSI suggests an overbought market, there is no convincing signal of the uptrend reversal.

Most likely, the uptrend would resume after the current shallow correction.

A break above $98.41 could lead to a gain into $99.29-$100.23 range.

On the daily chart, oil is facing a resistance at $99.51.

Brent oil may extend gains to $92.82

A break above this resistance could lead to a gain into $104.41-$109.31 range.

However, a more favoured scenario will be that oil either retraces towards $93.44 or consolidates below $99.51 for a few days, as suggested by a falling channel.