Brent oil may retest a support at $71.29 per barrel, a break below which could open the way toward $68.99-$70.41 range.
The current consolidation is being shaped into an expanding wedge, which may turn out to be a continuation pattern, to be followed by a round of drop.
The pattern appeared after a deep fall, which was driven by a powerful wave c.
A projection analysis on this wave suggests a target zone of $67.57-$68.99.
This wave is unlikely to end around its 200% projection level of $71.29.
Based on this reading, the consolidation will be unlikely to develop into a bottom pattern. Resistance is at $74.30, a break above which could lead to a gain to $75.89.
Brent oil may revisit Wednesday low of $71.67
On the daily chart, a flag suggests a target of $57.95, the 161.8% projection level of the wave (C).
A retracement analysis on the uptrend from $15.98 reveals a similar target of $63.02.
Following the drop on March 17, the sideways move around the support of $73.82 seems to be ending. Oil could be poised to drop towards $67.75.
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