Brent oil may retest a resistance at $77.52 per barrel, a break above which could lead to a gain to $78.39. The rise on Wednesday adds weight to a conviction that a wave c is unfolding towards its 61.8% projection level of $79.26.
At its full capacity, this wave may travel to $82.06.
A rising trendline remains intact, suggesting a steady uptrend.
Support is at $76.45, a break below which could open the way towards $75.23-$75.79 range.
A drop to $75.79 would be deep enough to indicate a reversal of the uptrend from $71.39.
On the daily chart, oil approached a resistance at $77.56 again.
A break above this level could confirm a double-bottom and a target of $83.63.
To make such a break valid, oil has to close above $77.56 on Wednesday.
A failure to overcome this barrier followed by a drop would be a very bearish signal that the downtrend may have resumed.
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