Brent oil ICEEUR:BRN1! looks neutral in a range of $71.25 to $72.57 per barrel, and an escape could suggest a direction.
The bias might be toward the upside, as a five-wave cycle from $98.97 might be ending, as the fifth wave seems to have completed around $70.53. The bullish divergence on the hourly RSI suggests a completion as well.
A break above $72.57 may led to a gain into the $73.20-$74.14 range, while a break below $71.25 could be followed by a drop into the $69.68-$70.53 range.
On the daily chart, the market has stabilized around a support at $69.98. The stabilization signals a bounce toward $74.52 or $77.32.
The daily RSI formed bullish divergence as well, suggesting an exhaustion of the downtrend. The downtrend might be slowly reversing.
* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - a London Stock Exchange product.
** No information in this analysis should be considered as being business, financial, or legal advice. Each reader should consult his or her own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.