Brent oil may bounce into a range of $85.59-$86.32 per barrel, as it may have completed the first part of a correction from the April 12 high of $87.49.

The correction could be well broken down into five small waves.

Such a structure is a typical indictor of a completed correction.

It is not very clear how strong the current bounce would be. The congestion area between $83.66 and $86.32 from April 3 to April 11 suggests a stop of the bounce around $86.32.

Support is at $84.52, a break below which could open the way towards $82.80-$83.66 range.

On the daily chart, the gap forming on April 3 works as a strong support, temporarily preventing a further slide.

Brent oil may fall into $82.80-$83.66 range

However, this is a common gap, which is supposed to be covered in due course.

The downtrend from $125.19 looks intact, as the strong rise from the March 20 low of $70.12 might have been driven by a wave (D), which is expected to be reversed by a wave (E).