Brent oil is expected to fall into a range of $76.45-$78.30 per barrel, driven by a powerful wave e. This is the fifth wave of a five-wave cycle from the Nov. 7 high of $99.56.
It may travel to $76.45, as pointed by a falling trendline.
Five smaller waves make up this wave e.
The fiercest wave 3 is unfolding rapidly towards the target zone.
Fundamentally, the widespread protests and clashes in China fuel the swift extension of this wave.
A bounce is unlikely to occur before oil drops into $76.45-$78.30 range.
Brent oil to retest support of $84.28
Immediate resistance is at $82.35, a break above which may lead to a gain into $83.14-$84.28 range. On the daily chart, oil broke a support at $83.63.
The break opened the way towards $57.95-$67.75 range.
However, the support at $77.56 may temporarily stop the drop, as the support is coincidentally established by the 114.6% projection level and the 50% retracement.
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