Brent oil to fall to $62.31

SINGAPORE: Brent oil is expected to fall to $62.31, as it has cleared a support at $64.02 per barrel.

The support was provided by the 138.2 percent Fibonacci projection level of an upward wave C, the third wave of a three-wave cycle that developed from $52.50. The next support will be at $62.31, the 114.6 percent level, a break below which could cause a further loss to $61.25, the 100 percent level, which is pointed by the lower channel line of a falling channel.

A break above $64.02, now a resistance, could lead to a limited gain to $64.88, the 150 percent level.