U.S. oil NYMEX:CL1! looks neutral in a range of $69.13-$70.85 per barrel, and an escape could suggest a direction.
A break above $70.85 may lead to a gain into $71.91-$72.56 range. A further gain would confirm a small double-bottom around $69.13 and a target of $75.34.
A break below $69.13 would signal the continuation of the downtrend toward $66.35-$68.07 range. On the daily chart, the market is consolidating around a support at $70.52.
The consolidation could be followed by either a strong bounce toward $79.95, as pointed by a falling channel, or a deep fall toward $55.29-$64.07 range, as suggested by a retracement analysis.
A further development of the chart is needed to evaluate the subsequent move.
* 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.