Brent oil looks neutral in a range of $77.92 to $79.65 per barrel, and an escape could suggest a direction.
The current sideways move indicates the formation of either a temporary bottom or a continuation pattern. A break above $79.65 may lead to a gain into $81.05-$82.46 range while a break below $77.92 could open the way towards $75.11.
The bias could be towards the downside, as bears could have accumulated strong momentum from the deep drop over the past two days. A truce with bulls could be short-lived. On the daily chart, market became hesitant around a support of $77.56, coincidentally provided by the 114.6% projection level and the 50% retracement.
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Even though this support would be eventually broken, it is hard to predict the timing. So far, confirmation signal is yet to appear. A drop below $77.61 may signal such a break.
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