Markets

Brent oil to test support at $43.74

Published November 13, 2015 Updated November 13, 2015 08:16am

SINGAPORE: Brent oil is expected to test a support at $43.74 per barrel, a break below which will cause a loss to the next support at $42.52.

These supports are identified respectively as the 123.6 percent and the 138.2 percent Fibonacci projection levels of a downward wave C, the third wave of a presumed three-wave cycle from the Aug. 31 high of $54.32. The strong bearish momentum suggests oil may revisit its Aug. 24 low of $42.23.

A bounce from the current level may be limited to $44.49, the 114.6 percent projection level.

Copyright Reuters, 2015