Brent oil may retest a resistance zone of $76.65-$77.40 per barrel, as suggested by its wave pattern and a rising channel. The contract is presumed to be riding on a wave c, which consists of five smaller waves. So far, only four waves have unfolded.

The final small wave is expected to drive the price towards $77.40.

This bullish target would remain intact as long as oil stays within the channel.

Pivotal support is at $74.98, a break below which may suggest the completion of the bounce from the May 4 low of $71.28.

Brent oil may retest resistance at $77.40 after correction

The wave bottom of the wave b at $73.49 will be targeted.

On the daily chart, oil failed again to rise above a neutral range of $73.82-$77.56.

It may either consolidate further in the range towards $73.82 or retest the resistance at $77.56. Signals on the hourly chart suggest an upside bias.

A break above $77.56 could lead to a gain into $80.72-$83.63 range, while a break below $73.82 could open the way towards $67.75-$70.12 range.