SINGAPORE: Brent oil faces resistance at $110.99 per barrel and may retrace to support at $109.41.
Resistance has been formed around the 61.8 percent Fibonacci projection level of an upward wave C that rose from the May 6 low of $106.97.
It is strengthened by another one at $110.40, exerted by a trendline descending from the Aug. 28, 2013 high.
These two resistances have made an extension of the wave C less possible. Chances are, oil may retrace to $109.41, the 38.2 percent projection level.
A break above $110.99 could trigger a further gain to $111.97, the 76.4 percent level.
The views expressed are his own.
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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