SINGAPORE: Brent oil is likely to fall below more to $54.90 per barrel, as was pointed out by the lower channel line of a falling channel.
The wave pattern suggests that oil is riding on a wave 5, which looks incomplete. It is the fifth wave of a bigger wave (3) that developed from the Dec. 23, 2014 high of $62.14 and has been unfolding within the falling channel.
Resistance is at $56.60, a break above which could signal the completion of the wave 5, and a rebound target will be established at $58, a resistance provided by the upper channel line. 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.
