SINGAPORE: Brent oil may form a temporary bottom in a support zone of $105.49-$105.78 per barrel, and rebound towards $106.62.
The zone has been formed by the 61.8 Fibonacci projection level of a downward wave (C) and the 76.4 percent projection level of the wave C.
The drop from the Oct. 30 high of $110.16 could be too sharp to be sustained. Given that the 50 percent projection level of the wave (C) at $106.74 has triggered a very decent rebound, support at $105.49 may cause another bounce.
A drop to $105.20 may extend into a lower support zone of $103.96-$104.43.
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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