Markets

Brent oil to test support at $106.35

Published January 7, 2014 Updated January 7, 2014 05:43am

SINGAPORE: Brent oil may test a support at $106.35 per barrel, a break below which will open the way towards $105.59.

The support is provided by the 123.6 percent Fibonacci projection level of a downward wave (c), the third wave of a three-wave cycle that started at the Dec. 4, 2013 high of $113.02.

The final component of this wave, the wave 5, looks exhausted and may end either at $106.35 or at $105.59, the 138.2 percent projection level.

A surge above $107.58, the 100 percent projection level, may indicate the completion of the wave (c), and a bullish target at $108.81 will be established.

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.