Brent Crude Breaks $80 Support, C-Wave Targets $75

Brent crude broke below the $80 support zone on Monday, accelerating the C-wave of an ABC correction that started in early May.

The level had held since March, when it stopped wave (2) of the prior impulse from December. Monday's move also cleared the 61.8% Fibonacci retracement of that same impulse – a threshold that, under Elliott wave theory, often marks the boundary between a shallow second wave and a deeper correction. The failure of that level confirms the active pattern is a full three-wave structure, not a simple pullback.

The C-wave is the third leg. Its standard Fibonacci extension target is $75, a level that has acted as support in past trading ranges. If Brent reaches $75 and shows signs of buying interest, the correction could be complete. A break below $75 would open the door to the February low near $72.

The break shifts the risk profile for anyone holding long positions from the December rally. Traders who bought the dip near $80 are now underwater. The correction is extending, not finishing.

Two signals would confirm the bearish case. First, consecutive daily closes below $80. Second, the daily RSI staying below 40. A close back above $80.50 would suggest the break was a false move. A quick bounce reclaiming $80 within two sessions would also weaken the bearish setup.

The next concrete level to watch is $75, the completion point for the C-wave under standard Fibonacci projections. That's where sellers may look to take profit and where buyers may test the bid.