SINGAPORE: Brent oil faces a resistance at $104.08 per barrel and may retrace moderately to $103.43.
The resistance is provided by the 38.2 percent Fibonacci retracement on the fall from the Aug. 8 high of $106.85 to the Aug. 13 low of $102.37.
It is not very clear if the rebound from this low will extend. Given that the former resistance at $103.43, the 23.6 percent level, has triggered a correction, the current resistance may cause another one.
A break above $104.08 may lead to a limited gain to $104.61, the 50 percent retracement.
Wang Tao is a Reuters market analyst for commodities and energy technicals. 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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