SINGAPORE: Brent oil is expected to test a support at $105.99 per barrel, a break below which will lead to a further loss to $105.25.
The support is provided by the 61.8 percent Fibonacci projection level of a downward wave C which has been driving oil from the March 7 high of $109.09.
Given that the support at the 38.2 percent projection level of $107.17 has triggered a decent rebound, the current support may cause another one towards $106.58, the 50 percent level, or to $107.17.
Most likely, oil may consolidate in a narrow range of $105.99-$106.58 for one trading session before falling again.
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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