Friday, 13 November 2015 13:16
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.
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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.
