Brent oil ICEEUR:BRN1! looks neutral in a narrow range of $71.91 to $73.20 per barrel, and an escape could suggest a direction.
The bias it toward the downside, as a projection analysis on the downtrend from $109.69 suggests a target zone of $66.08 to $68.31.
A realistic target zone is from $69.68 to $70.53, which will be confirmed when the market breaks the support at $71.91. A break above the resistance at $73.20 may lead to a gain into the $74.14-$75.52 range.
On the daily chart, a projection analysis on the downtrend from $112.94 marks a target range of $62.65 to $69.98, formed by the 161.8% and the 138.2% levels.
A harami cross formed between June 26 and June 29. Whether it will prove to be a reversal pattern will depend on the market's ability to break $74.52.
As long as the contract remains below $74.52, the downtrend will be considered intact.
* 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.