Markets

Brent oil may fall more to $49.84

Published January 7, 2015 Updated January 7, 2015 05:06am

SINGAPORE: Brent oil may slide further to $49.84 per barrel, as indicated by its wave pattern and a Fibonacci projection analysis.

The contract is riding on a wave v, the fifth wave of a five-wave cycle that developed from $57.96, an hourly chart high touched on Jan. 2. This cycle has been developing within a falling channel, the lower channel line of which points a target at $49.84, a 300 percent Fibonacci projection level.

The support at $50.79, the 261.8 percent level, has temporarily stopped the wave v. A moderate rebound has been triggered, which may be capped at $51.73, the 223.6 percent level.

Copyright Reuters, 2014