Brent oil may retest a support of $84.03 per barrel, a break below which could open the way towards $82.86. The deep drop on Tuesday strongly suggests a reversal of the uptrend from $79.10. A small triple-top around $86.63 has been confirmed, further indicating the trend reversal.
The target of $84.03 will remain valid unless oil breaks the immediate resistance at $85.73, which is strengthened by a falling trendline. Such a break may lead to a gain into $86.63-$87.61 range.
On the daily chart, the harami cross formed around a resistance at $86.54 between Feb. 10 and Feb. 13 was confirmed as a reversal pattern by the small black candlestick on Tuesday.
Oil prices fall after US crude release and inflation data
A further fall below $83.63 seems highly likely. This fall will be important in confirming a bearish wedge. A break above $86.54 would lead to a gain into $89.28-$93.44 range.
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