Brent oil may bounce into a range of $74.36-$74.99 per barrel, as it has found a strong support of $71.67.

The support is identified as the 161.8% projection level of wave C from $83.06.

Even though it is not very clear if this wave has ended around this barrier.

The reaction of the market signals that it would at least experience a decent bounce.

How far this round of bounce could go remains unknown. An estimated target is $74.78, which falls within the range of $74.36-$74.99.

It must be noted that a weak bounce may end below the zone. A break below $71.67 could confirm the continuation of the downtrend towards $68.98-$70.64 range.

Brent oil may fall into $82.80-$83.66 range

On the daily chart, the contract seems to have broken a support of $73.82.

It is pulling back towards this level.

The break opened the way towards $62.85-$67.75 range.

The downtrend is expected to resume upon the completion of the pullback.