Brent oil may drop into a range of $73.24-$74.04 per barrel, driven by a wave b. The deep drop from the Thursday high of $77.44 confirmed a completion of the bounce from $70.12. The bounce adopted a five-wave mode.
With the primary downtrend remaining firm, this five-wave bounce could hardly develop into a medium-term uptrend. Instead, it may be a part of a zigzag.
Three waves make up the pattern. The current wave b is unfolding towards $72.92, the presumed ending point of this wave.
A retracement analysis on the downtrend from $86.75 and the trend from $83.33 reveals a lightly higher target zone of $73.24-$74.04.
A break above $76.72 could lead to a gain to $78.44.
Brent oil may test support at $75.17
On the daily chart, oil failed to break a resistance at $77.56. It may retrace towards $73.82.
The consolidation around $73.82 may last a few days, to be followed by a resumption of the downtrend towards $57.95-$63.02 range, as suggested by a projection analysis and a flag.
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