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.
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.
Copyright Reuters, 2011
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