Brent oil may retrace further to $73.65 per barrel, as its bounce from $71.28 has completed. The completion was confirmed by the three failures of oil to break a resistance at $77.47 and the deep drop on Thursday.
A top forming around $77.47 suggests a target of $72.41.
The downtrend from $87.49 has quite likely resumed.
Otherwise, the following drop won’t be so deep as to extend to $72.41.
Resistance is at $76.09, a break above which could lead to a gain to $77.47.
On the daily chart, oil is poised to test a support at $73.82, after it failed to break a resistance of $77.56.
Brent oil may fall into $81.07-$71.73 range
A break below the support could open the way towards $67.75-$70.12 range.
The further oil drops, the less likely a double-bottom forms around $70.12.
The current drop might be riding on a wave (E), which is capable of travelling to $57.95.
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