Brent oil may retest a support of $83.66 per barrel, a break below which could open the way towards $82.80. The correction from the Monday high of $86.44 may consist of three waves.
The current wave b is expected to end around $85.59, to be reversed by the subsequent wave c.
Given that the uptrend from $72.68 has been driven by a powerful wave (3), which is unlikely to be disrupted by a deep correction, the wave c could be short, probably limited to $83.66.
A break above $85.59 would lead to a gain into $86.32-$87.32 range. On the daily chart, oil failed to break a resistance of $86.54.
The failure is interpreted as a start of a consolidation in either a narrow range of $83.63-$86.54, or a bigger range of $80.72-$86.54.
Brent oil may retest support at $78.44
Market behaved sideways within the range of $80.72-$86.54 between Feb.
6 and March 10. Chances are it may repeat this pattern over the next few days.
A break above $86.54 could lead to a gain into $89.28-$93.44 range.
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