SINGAPORE: Brent oil is expected retest a support at $107.40, with a good chance of breaking below this level and falling further to $106.76 per barrel.
An uptrend that started at the April 18 low of $96.75 could have peaked at the Aug. 2 high of $110.09, as it is very close to a pivotal resistance at $110.61, the 61.8 percent Fibonacci retracement on the fall from the Feb. 8 high of $119.17 to $96.75.
Wave pattern on the daily chart suggests the completion of a five-wave cycle, which may be totally reversed in due course. Under such a bearish presumption, the support at $107.40, the 61.8 percent Fibonacci retracement on the rise from July 31 low of $105.73 to $110.09, is expected be weak, unable to hold the current fall very long.
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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