Brent oil is expected to revisit its Monday low of $82.31 per barrel, probably after a moderate consolidation above the support of $84.28.
The deep fall on Wednesday was driven by a wave e, the fifth wave of a five-wave cycle from the Nov. 7 high of $99.56.
A falling trendline points at an aggressive target of $78.30.
A realistic target will be $82.31, near $82.35.
This target will be confirmed when oil breaks $84.28.
A bounce may be limited to $86.13. On the daily chart, oil is making its third attempt to break $83.63.
Oil prices hit 10-month low on OPEC+ production boost report
It is generally observed that the third attempt is mostly likely to achieve something, no matter how strong the barrier is.
Once oil breaks $83.63, it is expected to fall more towards $57.95-$67.75 range, which engulfs the 61.8% retracement of $63.02.
Comments
Comments are closed for this article.