Brent oil ICEEUR:BRN1! is biased to test a resistance at $73.20 per barrel, a break above could lead to a gain into the $74.14-$75.52 range.
A projection analysis reveals a neutral range of $70.53 to $73.20, formed by the 414.6% and the 386.4% levels. 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. However, the reversal of the downtrend will only be confirmed when the market breaks $73.20.
Immediate support is at $71.25, a break below may trigger a fall into the $69.68-$70.53 range. On the daily chart, the market appears to be stabilizing around a support at $69.98.
Although a projection analysis suggests a further fall toward $62.65, the stabilization of the prices simply indicate a forthcoming bounce toward $74.52, or $77.32.
* 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.