SINGAPORE: Brent oil is expected to find a support at $108.18 and then rebound to $109.41 per barrel.
It seems a three-wave cycle from the Nov. 8 low of $102.98 has completed, as indicated by the deep fall on Monday.
A Fibonacci retracement analysis on the cycle reveals the support at $108.18, the 38.2 percent level, which may temporarily stop the fall and trigger a rebound towards the 23.6 percent retracement at $109.41.
The third wave of the cycle, the wave C, is apparently shorter than the first wave, the wave A. That has cast some doubt on the completion of the cycle.
Unfortunately, the extension of the wave C will only be confirmed when it goes above $111.40.
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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