Brent oil may test a resistance at $83.74, a break above could lead to a gain to $84.45. The strong bounce on March 10 indicates an extension of a wedge.
The bounce has briefly pierced above a resistance at $83.03.
Chances are it may develop further into $83.74-$84.45 range.
The upper trendline of the wedge suggests a much higher target of $86.75, which looks too far away to be realistic.
A wave b peaked around $83.74, which works as the nearest target.
Support is at $82.15, a break below could open the way towards $80.73-$81.61.
A drop into this range could confirm the wedge as a bearish continuation pattern, with a target of $76 to be established accordingly.
On the daily chart, it is within a rising channel that oil has been consolidating.
Due to the bounce on March 10, the escape from this channel failed.
Brent oil may bounce moderately before falling
The bounce could be the final struggle of bulls to maintain the frontline around $80.72. Unless they could push the price above $86.54, the maintenance would simply make little sense.
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