SINGAPORE: Brent oil may retest a resistance at $51.73 per barrel, as it has not completed a rebound from the Jan. 7 low of $49.66.
The rebound is expected to consist of three waves. So far, only two have completed. The third wave, labelled c, may travel to or above $51.73, the 223.6 percent Fibonacci projection level of the downtrend that developed from $57.28, an hourly chart high touched on Jan. 2.
Oil has managed to stabilise above a support at $50.79, the 261.8 percent projection level, also suggesting an extension of the rebound. A break below this support could lead to a further loss to $49.84, the 300 percent level.
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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