Brent oil may retest support at $83.18 per barrel, a break below which could open the way towards $81.74. The drop from $85.50 seems to be closely following a set of projection levels of a wave C, the third wave of a presumed three-wave cycle from $88.95.

This wave could at least travel to $79.41.

A less bearish target is $81.74, which is near $81.50, the bottom of wave b.

At its full capacity, the wave C may travel to $75.65.

Resistance is at $84.81, a break above which could lead to a gain into $85.50-$86.63 range.

Brent oil price broadly steady at $80/bbl amid rising US stockpiles

On the daily chart, the hanging man on Thursday confirmed a completion of the bounce from the Feb. 6 low of $79.10. Due to this completion, an assumed expanding wedge is unlikely to develop further.

Instead, oil may retest the support of $80.72, a break could confirm the continuation of a wave (C) towards $67.75.