Brent oil may retest support of $85.59

Brent oil may retest a support of $85.59 per barrel, with a good chance of breaking below this level and falling into $83.66-$84.52 range.

The contract still hovers below a resistance zone of $86.75-$87.32.

A wave (5) or the first part of this wave may have ended around this zone.

Oil may either fall below $83.66 or pause above this level. The bearish divergence on the hourly RSI suggests an exhaustion of the uptrend.

Chances are that oil may drop towards the bottom of the wave (4) around $83.66. A break above $86.92 may lead to a gain to $87.32.

Only a further gain could confirm the continuation of the uptrend.

Brent oil may test support of $85.59

On the daily chart, oil is more and more likely to cover a common gap forming on April 3, while struggling around a resistance at $86.54.

Even if the contract is unable to fully fill this gap, it may at least retrace to $83.63. Despite the strong rise from the March 20 low of $70.12, the trending signals remain bearish.

The rise may have been driven by a wave (D), the fourth wave of a five-wave cycle from $139.13. It is expected to be reversed by a wave (E).

A target range of $89.28-$93.44 will be established if oil climbs above the April 12 high of $87.49.