Markets

Brent oil to peak around $110.35

Published May 19, 2014 Updated May 19, 2014 06:18am

SINGAPORE: Brent oil July may peak around a resistance at $110.35 per barrel, as indicated by a Fibonacci projection analysis and a rising channel.

The contract is riding on the final wave of an uptrend that developed from the May 1 low of $106.32.

The trend consists of three bigger waves, with the third wave labelled C expected to be composed of another five small waves.

The final wave, labelled 5, may peak around $110.35, the 161.8 percent Fibonacci projection level of the wave C. Coincidentally, this target is pointed by the upper channel line of the channel, as well.

Support is at $109.57, the 123.6 percent level, a break below which may indicate a reversal of the uptrend.

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.

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