SINGAPORE: Brent oil is expected to retrace to $101.38 per barrel, as it failed to break resistance at $103.34.
The resistance has been identified as the 38.2 percent
Fibonacci retracement on a five-wave cycle that developed from the July 25 high of $108.46. A correction towards the 14.6 percent level of $101.38 could have been triggered.
A break below $101.38 could cause a further loss to $100.17, while a break above $103.34 will open the way towards $104.32, the 50 percent retracement.
Most likely, oil will consolidate in the range of $100.17-$103.34 for two more trading days.
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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