SINGAPORE: Brent oil looks exhausted and may retrace to $104.30 per barrel.
An upward wave c has been driving the price up from the May 1 low of $98.76. However, this wave could have traveled too fast to maintain its bullish momentum, as it has not been interrupted by any decent correction yet.
A Fibonacci projection on the target of the wave c reveals a resistance at $106.01, its 100 percent level. Coinciding with this resistance is another one at $106.04, the 61.8 percent Fibonacci retracement on the fall from the April 2 high of $111.79 to the April 18 low of $96.75.
These two resistances may effectively stop the wave c, causing the formation of a temporary top around $106.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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