Brent oil may retest a resistance at $73.39 per barrel, a break above which could lead to a gain to $74.70. The contract found a strong support of $71.67, the 161.8% projection level of wave C from $83.06.

This barrier triggered a bounce which is believed to be as strong as the one from a low of $77.46. A falling channel suggests a target of $74.70, the 38.2% retracement of the fall from $80.24.

A drop below $71.28 would confirm the continuation of the downtrend towards $68.98. On the daily chart, the contract has broken a support of $73.82. It is pulling back towards this level.

Brent oil may bounce into $74.36-$74.99 range

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

The pullback is expected to end around $73.82.

A brief piercing above $73.82 will not be treated seriously.

Only a close above this level could make much sense.