Brent oil to fall to $54.90

SINGAPORE: Brent oil may slide more to $54.90 per barrel, as pointed 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.

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