SINGAPORE: Brent oil may retest support at $80.40 per barrel, a break below which could cause a fall into $77.77-$77.59 range.

The bearish divergence on the hourly MACD keeps on working on the prices.

A further drop is highly expected.

A rising trendline has been broken. The break suggests reversal of the uptrend from $69.28.

However, signals are mixed on the depth of the correction.

The bearish divergence suggests a deep drop while the speed of the drop over the past two days indicate a shallow correction.

A break above $81.41 could lead to a gain into $82.10-$83.04 range. On the daily chart, oil failed to break a resistance at $81.57 and a falling trendline.

Even though the failure does not lead to an immediate conclusion that a wave B from the Dec. 2, 2021 low of $65.72 has completed, it does suggest a fall towards $77.96.

Once oil drops to this level, it would be unlikely to retest $81.57.

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