SINGAPORE: Brent oil may drop to $86.49 per barrel, as its correction from the Jan. 19 high of $89.17 looks incomplete.

The correction may have adopted a double zigzag mode, consisting of seven waves in total.

The bounce on Tuesday was driven by a wave x, which will be reversed by a downward wave a.

This wave count will be revised if oil breaks a resistance zone of $88.31 to $89.

Brent oil may retest support at $85.68

A bullish target range of $89.94-$90.95 will be established accordingly.

A break below the immediate support of $87.30 could signal an extension of the correction. On the daily chart, the current correction could be of the same degree with the one from the Dec. 9, 2021 high of $76.70.

A rising channel suggests a further drop to $81.57.

The support at $85.17 temporarily holds.

It triggered a bounce on Tuesday. Until oil stands firm above $89.63, it is likely to retest the support at $85.17.

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