SINGAPORE: Brent oil may bounce into a range of $79.54-$80.23 per barrel, as it has found a support at $77.74.

The support is identified as the 114.6% projection level of a downward wave c from $83.14.

This wave has a zigzagging structure. It is observed that a decent bounce generally followed a sharp drop.

The stabilization of the price around $77.74 signals the development of such a bounce.

A break below $77.74 could confirm the continuation of the downtrend towards $76.63.

Brent oil may end bounce around $82.03; drop incomplete

On the daily chart, the current fall is categorized as a pullback towards a long-term trendline falling from the 2008 high of $147.50.

The pullback is expected to end in the support zone of $73.50-$77.96.

In consideration of the possible gains on the hourly chart, a reversal candlestick pattern may form on Monday, which could be a hammer or a big white candle.

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