SINGAPORE: Brent oil seems to have stabilised around a support at $105.98 per barrel, and may remain above it or rebound towards a resistance at $107.84.
The support is provided by the 76.4 percent Fibonacci retracement on the rise from the Nov. 8, 2013 low of $102.98 to the June 19 high of $115.71. It has been strengthened by another similar one established by a trendline rising from the April 18, 2013 low of $96.75.
These two supports could work together to stop a further fall. However, it is not very clear if a rebound could be triggered towards the 61.8 percent retracement at $107.84.
A drop to $105.60 will confirm a break below $105.98 and the April 2 low of $103.95 will be targeted then.
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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