Markets

Brent oil to fall to $45.88

Published January 13, 2015 Updated January 13, 2015 06:52am

SINGAPORE: Brent oil is expected to drop more to $45.88 per barrel, driven by a wave 5.

This is the fifth wave of a powerful wave (3) that started at the Dec. 23, 2014 high of $62.14. Given that the third wave labelled 3 is slightly longer than the first wave, the wave 1, the wave 5 may extend a lot.

A Fibonacci projection analysis based on the length of the wave 1 reveals an immediate target at $45.88, the 200 percent projection level. A trendline passing through the bottoms of the wave 1 and the wave 3 points a lower level at $44.39, the 223.6 percent level.

Resistance is at $47.37, the 176.4 percent level, a break above which could trigger a further gain to $48.30, the 161.8 percent level. oil may reach a key support at $41.99 very soon..

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.

Copyright Reuters, 2015