SINGAPORE: Brent oil may bounce into a range of $103.02-$105.39 per barrel, as it is stabilizing around a support at $97.71.
This support is provided by the 176.4% projection level of a downtrend from $133.15. In terms of Fibonacci projection analysis, this is not a key level.
However, this support becomes effective when it is accompanied by the bullish divergence on the hourly RSI, which symbolizes the weakness of the fall.
A moderate bounce may extend into the range of $103.02-$105.39.
The downtrend will remain steady and may resume upon the completion of the bounce, as a pennant from $133.15 suggests a target around $88.
On the daily chart, oil seems to be stabilizing around a support at $97.26, the 61.8% retracement of the fall from the 2008 high of $147.50 to $15.98.
The stabilization significantly increases the chance of a bounce.
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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