Brent oil may bounce further into $75.89-$76.43 per barrel, due to the completion of a five-wave cycle. The cycle started at $83.33. Its fourth wave, the wave 4, ended around $75.89, which stands firm as a target.
Once fulfilling this target, oil is expected to fall towards $72.71, near the bottom of a wave b. Support is at $74.30, a break below which could signal the completion of the bounce. A bearish target zone of $72.71-$73.59 will be established accordingly.
A break above $76.43, which looks unlikely, may lead to a gain to $77.31. On the daily chart, the hammer forming on Monday has been confirmed as a bullish reversal pattern, by the white candlestick on Tuesday.
Brent oil may bounce more to $75.89
This reversal pattern is acting against the short downtrend from the March 7 high of $86.75. The longer downtrend from $125.19 remains steady. A flag suggests an extension of the downtrend towards $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.