Brent oil may extend loss into a range of $76.02-$76.76 per barrel, driven by a wave C. This wave has travelled far below its 61.8% projection level.

Chances are it may extend to $76.02. A retracement analysis on the uptrend from $70.12 reveals a break below the 50% support of $78.81. The break opened the way towards the next support of $76.76. The wave C is expected to pause in the support zone of $76.02-$76.76.

Once the support at $76.02 is broken, this wave may rapidly unfold towards a range of $70.12-$71.67. On the daily chart, oil is riding on a wave (E), which could extend into a range of $57.95 to $62.85, as pointed by a falling channel.

Brent oil may test support at $81.73

A realistic target would be $73.82. How deep the current drop would be? The wave (4) ended around $65, which serves as the first target. However, there are cases when retracement could reach the bottom of the wave two.

That would mean a further slide to $36. Whether this aggressive target could be fulfilled will largely depend on the performance of oil around the support of $63.