SINGAPORE: Brent oil looks neutral in a range $98.44-$103.09 per barrel, and an escape could suggest a direction.
The bounce triggered by the support at $98.44 sends mixed signals. It is stronger than the previous two on April 6 and April 7.
This relation suggests a reversal of the downtrend. However, it adopts a corrective wave mode, which is not a convincing signal of a further rise.
A projection analysis on the downtrend from $114.77 indicates a downside bias, as the trend may eventually extend to $95.87.
Brent oil may gain more to $113.05
On the daily chart, a triangle is contracting to a point, which could turn out to be a bullish continuation pattern or a top pattern.
Regardless of the next direction, oil may manage to stabilise around a key support at $97.26 again and bounce towards the range of $102.64-$107.62 thereafter.
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