SINGAPORE: Brent oil looks neutral in a range of $73.50 to $75.20 per barrel, and an escape could suggest a direction.
The contract failed twice to break a resistance at $76.62.
The failure suggests the formation of a flat pattern or a double-top.
The former will be followed by a strong rise upon its completion while the latter a deep fall.
A break below $73.50 will confirm the double-top and a target of $70.87.
A break above $75.20 will open the way towards $76.62. On the daily chart, oil is struggling around a pivotal level of $73.50.
A further development of the chart is needed to evaluate the following direction.
It is clear that an upward wave B is unfolding. However, it is unclear how far this wave could travel. A break below $73.50 could open the way towards $68.43-$70.75 range.
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