SINGAPORE: Brent oil is expected to test a resistance at $32.72 per barrel, as it has found a support at $30.58.
The support and the resistance are provided respectively by the 14.6 percent and the 23.6 percent Fibonacci retracements on the downtrend from the Nov. 3, 2015 high of $50.91 to the Jan. 20 low of $27.10.
The channel line of a falling channel also suggests a target at $32.72, after touching which, oil will resume its drop towards $27.10, to reverse the downtrend then.
A drop below the Feb. 11 low of $29.92 could cause a loss to $28.77, the 7 percent level.
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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