Brent oil may rise into a range of $79.44-$80.15 per barrel, following the completion of a five-wave cycle from $88.44.
The wave 4 ended around $80.15, which serves as a target.
The strong bounce on Monday confirmed the completion of the cycle and this target.
A small double-bottom forming around $75.31 suggests a further gain into the zone of $79.44-$80.15 as well.
Brent oil may rise into $78.30-$79.44 range
A break above $80.15 may lead to a gain to $81.29.
A break below $77.38 could be followed by a shallow drop to $76.45.
On the daily chart, oil climbed above a support of $77.56 after briefly piercing below this level.
A false break below the support has thus been confirmed.
It indicates a temporary reversal of the downtrend.
The current bounce could be as strong as the one from the Nov. 28 low of $80.61, to extend into $80.72-$83.63 range.
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