Brent oil may test a support at $97.62 per barrel, a break below which could confirm a target of $94.50.

The contract failed to break a key resistance at $102.66. The failure, along with the following drop, suggests a completion of the bounce from $64.50.

The bounce adopted a corrective wave mode while the preceding fall from $107.70 a five-wave mode.

Such a structure indicates a steady downtrend from $120.41 which could eventually extend below $94.50.

Brent oil may bounce into $101.10-$102.66 range

On the daily chart, oil is riding on a wave (C) from $125.19, which is expected to extend to $83.63.

The bounce from the July 14 low of $94.50 failed to extend above a falling trendline.