Brent oil may test a support at $78.30 per barrel, with a good chance of breaking below this level and falling to $76.45. The drop is still well controlled by a set of projection levels on the downtrend from $96.95.
This projection analysis suggests a target of $76.45. Another projection analysis on a wave C from $88.44 reveals a similar target of $76.73.
This wave is capable of travelling to a much lower level of $69.49.
Resistance is at $80.15, a break above which may lead to a gain into $81.29-$82.35 range.
On the daily chart, oil is poised to test a support of $77.56, which is jointly provided by the 114.6% projection level of a wave (C) and the 50% retracement on the uptrend from $15.98 to $139.13.
Despite the current strong bearish momentum, it is hard to tell if oil could succeed in breaking $77.56 at its first attempt.
Most likely, a consolidation or bounce would occur around this level.
A break could confirm a target zone of $67.75-$73.82.