SINGAPORE: Brent oil may drop into a range of $97-$97.29 per barrel, as indicated by its wave pattern and a Fibonacci projection analysis.
The contract is riding on a wave c, the third wave of a bigger wave B that developed from the Sept. 17 high of $99.61. The wave c may travel into a range formed by its 61.8 percent and the 50 percent projection levels, based on the length of the preceding wave a.
A Fibonacci retracement analysis on the rise from the Sept. 15 low of $96.21 to $99.61 reveals a strong support at $97.01, the 76.4 percent level, close to $97.
Resistance is at $98.50, the presumed wave b peak, a break above which will indicate the wave B may have indeed completed at the Sept. 19 low of $97.18, and the $99.61 level will be targeted then.
Wang Tao is a Reuters market analyst for commodities and energy technicals. 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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