Brent oil looks neutral in a range of $93.11 to $94.89 per barrel, and an escape could suggest a direction.
The sharp fall on Monday paused around the support at $93.11. It is not very clear how long oil would hover above this level and in which mode it is going to consolidate between $93.11 and $94.89.
A break above $94.89 may lead to a gain into $96.32-$97.76 range.
However, the bias could be towards the downside, as the bounce triggered by $93.11 looks like a pullback towards a bearish wedge, which indicates a target of $88.
On the daily chart, the downtrend from $110.67 has resumed.
Brent oil may test support at $96.32
Eventually, oil may slide into a target zone of $79.98 to $83.63, as indicated by two projection analyses on the downtrend from $125.19 and the trend from $110.67.
The focus is now on a support of $93.44, which triggered a bounce on August 5.
With the strong bearish momentum accumulating through the deep drop from the August 12 high of $100.38, this support looks very vulnerable.
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