SINGAPORE: Brent oil is expected to fall towards support at $82.87 per barrel, as indicated by its wave pattern and a Fibonacci projection analysis.
Support is provided by the 86.4 percent Fibonacci projection level of a downward wave C that developed from the June 19 high of $115.71. It has triggered a rebound, which has been limited around resistance at $86.67, the 76.4 percent level.
The rebound has been driven by a wave 4, the fourth wave of a five-wave cycle that developed from the Sept. 17 high of $99.61. This wave is expected to be totally reversed by a downward wave 5.
A break above $86.67 may lead to a further gain to $89.17.
** 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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