SINGAPORE: Brent oil faces resistance at $110.27 per barrel and may retrace to $109.79.
The resistance is provided by the 76.4 percent Fibonacci retracement on the fall from the May 22 high of $111.04 to the June 5 low of $107.77.
Given that the rise from the June 6 low of 108.46 looks too linear to sustain, chances are, a correction may be triggered by the resistance, towards the 61.8 percent retracement at $109.79.
A break above $110.27 will open the way towards $111.04.
Until oil climbs above this level, the current rise will be classified as a rebound.
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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