SINGAPORE: Brent oil may retest a support at $107.79 per barrel, probably after a weak bounce towards $110.64.
The current fall is presumed to be against the uptrend from $101.30.
The preceding two corrections from the April 18 high of $114.84 and the May 5 high of $114 were very deep, each retracing about 86.4% of the corresponding uptrend.
Such a relation suggests an extension of the current correction towards $103.26.
A realistic target will be $106.71, the 161.8% projection level of a wave c.
Due to the over-sold market on Wednesday, oil seems to be bouncing a bit.
With the trending signals remaining bearish, it could be hard for the bounce to extend above $110.64.
On the daily chart, a retracement analysis on the fall from $139.13 reveals a target of $106.89, which is close to $106.71 (hourly chart).