Brent oil may hover below resistance at $63.40

02 Mar, 2015

SINGAPORE: Brent oil faces a resistance at $63.40 per barrel and may continue to hover below this level or retrace towards a support at $59.10.

The resistance and the support are identified respectively as the 50 percent and the 38.2 percent Fibonacci retracements on the fall from the Nov. 21, 2014 high of $81.61 to the Jan. 13 low of $45.19.

Oil failed to break the resistance at its first attempt on February 17; it may fail again at its current attempt, as a flat seems to be developing. This pattern consists of three waves, with the current wave b expected to end around $63.40. A downward wave c will either partially or totally reverse the wave b.

A break above $63.40 could lead to a further gain to $67.70, the 61.8 percent retracement.

Copyright Reuters, 2015

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