Brent oil ICEEUR:BRN1! may retest a support at $70.53 per barrel, a break below could open the way toward a range of $66.08 to $68.31.
A projection analysis reveals a target range formed by the 461.8% and the 438.2% projection levels of a downtrend from $109.69.
A bounce occurred around $70.53. Whether this bounce proves to be the first sign of a trend reversal would depend on its ability to extend above $73.20.
A break above $71.91 would lead to a gain into the $73.20-$74.14 range. On the daily chart, a projection analysis on the downtrend from $112.94 marks a target zone of $62.65 to $69.98, formed by the 161.8% and the 138.2% levels.
A double-top forming between March 09 and June 12 suggests a lower target around $58.11. Even though a small spinning top appeared on Thursday around $69.98, it won't be considered a reversal pattern until a while candle formed on Friday.
* 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.