Brent oil is expected to break a resistance at $62.38 per barrel and rise into a range of $63.19-$63.99, as a temporary bottom has formed at the June 5 low of $59.45.
The bullish divergence on the hourly RSI suggests an exhaustion of the downtrend. A falling channel indicates a further bounce into the range of $63.19-$63.99, formed by the 150 per cent and the 138.2 per cent projection levels of a downward wave (C) from $75.60.
Support is at $61.39, a break below which could cause a loss limited to $60.71.
On the daily chart, the temporary bottom looks more convincing around a key support at $59.74, the 61.8 per cent retracement on the uptrend from $49.93 to $75.60.
