Brent oil may test a support at $81.05 per barrel, probably after a moderate bounce into $83.45-$84.19 range.
The drop on Tuesday was deep enough to confirm a completion of the bounce from $75.10. Five corrective waves made up the bounce, with the wave e ended at $87.
A retracement analysis on the rise from $75.11 reveals a target zone of $79.65 to $81.05.
Oil seems to be stabilizing around $82.46. It may either bounce towards the $83.45-$84.19 range, or consolidate around $82.46 for a day before resuming its drop.
On the daily chart, the 93% projection level surprisingly held strong, triggering a very deep fall.
A bearish engulfing pattern formed between Monday and Tuesday, confirming a reversal of the short uptrend from the Dec. 9, 2022 low of $75.11.
Oil falls again after last session’s tumble as economic worries grow
The contract has broken a support at $83.63, it is expected to test the next support of $80.72.
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