The zone has been formed by the April 16 high of $104.99 and a resistance established by the upper trendline of a wedge.
The bearish divergence on the hourly RSI strongly suggests a slim chance of a break above the zone.
Most likely, oil will peak near this resistance zone and start a downtrend towards $100, a support provided by the lower trendline of the wedge. A drop to $103.50 could signal the reversal of the uptrend.
A valid break above the zone will be confirmed when oil stands firm above $105.
The views expressed are his own.
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