Brent oil may retest a support at $78.73, a break below could open the way towards $77.31. The sharp bounce triggered by the support is regarded as a pullback towards a bearish wedge, which has been confirmed, suggesting a target of $76.

The pullback may have completed around $82.45.

Wave pattern indicates the progress of a wave c, which is expected to travel to $77.31, slightly above $76.

Immediate resistance is at $81.03, a break above could lead to a gain to $81.91.

On the daily chart, oil broke a support of $80.72 and narrowly missed the next support of $77.56.

Brent oil may bounce moderately before falling

The break represents bears’ overwhelming victory on the battlefield centred around $80.72. Both a bearish flag and the continuation of a wave (C) from $125.19 have been confirmed.

The wedge suggests a target of $57.95.

The swift recovery of the price from the Monday low of $78.34 could be due to a pullback towards the flag.