Brent oil may retest a support of $85.79 per barrel, with a good chance of breaking below this level and falling towards $84.70. The current drop from $89.09 observes two sets of retracements, respectively on the uptrend from $77.61 and the longer trend of $75.11.

Based on the reaction of the market to the support of $85.79 and the resistance at $87.05, the drop seems to be against the uptrend from $75.11.

To put it the other way, this uptrend has reversed. The consolidation within the range of $85.79-$87.05 is expected to be brief, followed by another round of deep drop towards $83.75-$84.70 range.

Oil edges up as US crude inventories rise less than expected

A break above $87.05 could lead to a gain into a zone of $87.41-$88.11 range. On the daily chart, a three-wave cycle from the Dec. 9, 2022 low of $75.11 could be ending, following the failure of the contract to break a resistance at $89.28.

The cycle is regarded as a part of a wave (C) from $125.19, which may travel into a range of $57.95-$67.75.