Brent oil may bounce to $83.58 per barrel, as its drop slowed on Wednesday. The fall from $86.75 has been linear, experiencing no decent bounce.
This is unusual in a consolidation phase. The moderate slide on Wednesday signals a dissipation of the bearish momentum.
The missing bounce is due. Strategically, the target of $83.58 will be available when oil breaks $82.83.
A break above $83.58, which looks unlikely, could lead to a gain to $84.32.
A break below $81.90 would confirm the continuation of the downtrend towards $80.40-$81.26 range.
Brent oil steadies as demand hopes and supply curbs support
On the daily chart, the spinning top on Wednesday represents a stabilization of the market.
Either a good bounce or a deep drop would follow. Signals on the hourly chart suggests a bounce.
Key support is at $80.72, a break below which could confirm a bearish flag, which indicates an aggressive target of $67.75.
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