Brent oil's target at $47.71 remains intact

SINGAPORE: A bearish target at $47.71 per barrel remains unchanged for Brent oil, as indicated by a Fibonacci projection analysis and a triangle.

The contract is still riding on a wave C, which is the third leg of a trend that developed from the May 6 high of $69.63. This wave has traveled below a support at $48.98, the 200 percent level, and the next support will be at $47.71, the 214.6 percent level.

The triangle forming between Aug. 10 and Aug. 14 indicates a lower target at $46.93, the 223.6 percent level. Indeed, oil may revisit its Jan. 13 low of $45.19 over the next few days.

A break above $48.98, now a resistance, will make signals neutral.