Markets

Brent oil may remain above $105.98

Published July 15, 2014 Updated July 15, 2014 03:27am

SINGAPORE: Brent oil seems to have stabilised around a support at $105.98 per barrel, and may remain above it or rebound towards a resistance at $107.84.

The support is provided by the 76.4 percent Fibonacci retracement on the rise from the Nov. 8, 2013 low of $102.98 to the June 19 high of $115.71. It has been strengthened by another similar one established by a trendline rising from the April 18, 2013 low of $96.75.

These two supports could work together to stop a further fall. However, it is not very clear if a rebound could be triggered towards the 61.8 percent retracement at $107.84.

A drop to $105.60 will confirm a break below $105.98 and the April 2 low of $103.95 will be targeted then.

The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice.

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