Markets

Brent oil may fall towards $49.78

Published October 8, 2015 Updated October 8, 2015 08:44am

SINGAPORE: Brent oil may break a support at $51.55 per barrel and fall towards the next support at $49.78, as it failed to break a resistance at $52.98.

The two supports and the resistance are identified respectively as the 38.2 percent, the 23.6 percent and the 50 percent Fibonacci projection levels of an upward wave C, the third wave of a three-wave cycle from the Aug. 24 low of $42.23.

This wave has been unfolding too fast to keep its momentum and could be reversed further. A drop to $51.26 could confirm both a break below $51.55 and the target at $49.78.

A break above $52.98 will lead to a further gain to $54.40, the 61.8 percent level.

Copyright Reuters, 2015