Brent Crude February contract topped a fraction below resistance at 109.50/55, collapsed to fill the gap at 108.39 and bottom just above support at 108.14/04. Quite volatile but in effect we have gone nowhere in 6 sessions so there is no clear trend. We are oversold short term though so watch resistance at 108.65/70. Above here we should stretch to 109.00 and possibly as far as 109.40/50 for another selling opportunity with stops above 109.80.
Failure to beat 108.70 leads to a retest of 108.25/15. Go with a break lower for a test of 107.70/60 which should hold the downside. However on a break lower we can target 107.10 and may be even 106.70/65 for a buying opportunity.