Brent oil may drop to $94.01

Brent oil may drop to $94.01 per barrel, as it has broken a support at $95.82.

Not only the support at $95.82, but also the rising trendline was broken.

A small double-top around $98.75 confirmed a reversal of the uptrend from $86.35.

The rise from $83.65 is presumed to have adopted a corrective wave mode.

The chance of oil to revisit the high of $98.75 is believed to be remote.

Brent oil may extend gains to $92.82

A break above $96.94 would suggest the continuation of the uptrend towards $98.75. On the daily chart, oil failed both to break a resistance at $99.51 and to escape from a falling channel.

The contract may either retrace towards $93.44 or resume it downtrend.

A break below $93.44 would basically eliminate the chance of the bounce to extend towards $99.51.