Brent oil may extend gains into a range of $88.39-$89.05 per barrel, as it has cleared a resistance zone of $86.75-$86.92. Wave pattern suggests the progress of a wave (5), which is expected to be as long as the wave (1), to travel towards $90.12.
A realistic target will be either $88.39 or $89.05. Given that the wave (3) has much extended, the wave (5) is unlikely to be much longer than the wave (3). Chances are the wave (5) may end around $90.12.
A drop below $86.75 could signal the break above the zone of $86.75-$86.92 was false. Oil may retrace towards $85.59 thereafter.
On the daily chart, oil has broken a resistance at $86.54. It is expected to climb into a range of $89.28-$93.44, as suggested by a falling channel.
It became clear that the current bounce is of the same degree to the one from the April 11, 2022 low of $97.57. A bold speculation is a wave (D) could be driving the bounce towards the channel line.
Brent oil biased to test support of $83.66
This wave might be followed by a downward wave (E), which would eventually travel to $67.75.
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