Brent oil ICEEUR:BRN1! may test a resistance at $74.14 per barrel, as it has climbed above a neutral range of $71.91 to $73.20.
The range serves as a base for the market to bounce further. Indeed, a five-wave cycle from $98.06 might be completing. The consolidation in the range is considered the first sign of the completion.
A break below $71.91 would confirm the continuation of the downtrend toward the $66.08-$68.31 range. On the daily chart, after sliding below a support at $74.52, the market remains sideways, instead of testing the next support at $69.98.
A harami cross formed between June 26 and June 29. Even though this reversal pattern was not confirmed by the following spinning top on June 30, the small bullish divergence on the daily RSI increases the reliability of this harami cross.
* 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.