Brent oil neutral while hovering about $110.42

SINGAPORE: Brent oil turned neutral as it hovers around $110.42 per barrel, the neckline of a double-top pattern.

The rebound from the previous trading session's low of $108.70 could be interpreted as a pullback to the neckline, but the corrective wave structure of the fall from the Sept. 15 high of $116.10 raises a doubt as to whether a medium-term downtrend is progressing.

Strategically, a fall below $108.66 will confirm the double-top and the downtrend, with a bearish target to be established at $104.22.

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Copyright Reuters, 2011