Brent oil may retrace further to $73.65 per barrel, as its bounce from $71.28 has completed. The completion was confirmed by the three failures of oil to break a resistance at $77.47 and the deep drop on Thursday.

A top forming around $77.47 suggests a target of $72.41.

The downtrend from $87.49 has quite likely resumed.

Otherwise, the following drop won’t be so deep as to extend to $72.41.

Resistance is at $76.09, a break above which could lead to a gain to $77.47.

On the daily chart, oil is poised to test a support at $73.82, after it failed to break a resistance of $77.56.

Brent oil may fall into $81.07-$71.73 range

A break below the support could open the way towards $67.75-$70.12 range.

The further oil drops, the less likely a double-bottom forms around $70.12.

The current drop might be riding on a wave (E), which is capable of travelling to $57.95.