Brent oil to rise towards $50.99 in three months

Brent oil to rise towards $50.99 in three months

Brent oil may slide a bit more to $42.94 per barrel before reversing its downtrend and rising towards $50.99 in three months, as suggested by its wave pattern and a Fibonacci ratio analysis. For a chart: http://tmsnrt.rs/2sgkAhE The contract is riding on a wave c, the third wave of a presumed three-wave cycle from the Jan. 3 high of $58.37. A Fibonacci projection analysis reveals a support at $44.54, the 86.4 percent level, which temporarily stopped this wave and triggered a bounce. This wave is capable of eventually traveling to $42.94. A falling channel suggests a similar target. The downtrend from $58.37 has been controlled at the same time by a set of Fibonacci retracements of the uptrend from the January 20, 2016 low of $27.10 to $58.37. Based on this analysis, oil is expected to drop to $42.74, the 50 percent retracement, as it has broken below the 38.2 percent level at $46.42. From a longer perspective, the downtrend from $58.37 could have been driven by a wave (b), the second wave of an upward three-wave cycle from $27.10. Read More…

 

Credit By : The Times of India

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