Brent oil may bounce into a range of $78.30-$79.44 per barrel, due to the completion of a five-wave cycle from $88.44. This cycle is a part of a wave C from $88.44.

A projection analysis on the target of this wave reveals a strong support of $76.73, the 61.8% level, around which the drop lost its momentum.

Strengthening this support is another one of $76.45, the 261.8% projection level of a downtrend from $96.95.

The bullish divergence on the hourly RSI suggests an exhaustion of the downtrend and a bounce as well.

A break below $76.45 would confirm the extension of the downtrend towards $73.96-$75.31 range.

Oil prices steady after hitting 2022 lows

On the daily chart, oil is facing a support of $77.56, which is jointly provided by the 114.6% projection level of a wave (C) and the 50% retracement on the uptrend from $15.98 to $139.13.

This support is working together with the other two on the hourly chart to temporarily stop the fall and trigger a bounce.