Brent oil may slide to $55.21
- The correction from the Jan. 13 high of $57.42 may have extended.
SINGAPORE: Brent oil may slide to $55.21 per barrel, as suggested by its wave pattern and a projection analysis.
The correction from the Jan. 13 high of $57.42 may have extended, after oil failed to break a resistance at $56.65, the 150% projection level on an uptrend from $50.56.
Three waves make up the correction. The third wave labelled c is unfolding. This wave could strong, travelling below the Jan. 18 low of $54.49, or weak, ending above this level.
In either case, it is likely to extend to $55.21, close to the Jan. 14 low of $55.24, as indicated by the symmetrical nature of the chart.
A break above $56.17 could lead to a gain into $56.65-$57.13 range. On the daily chart, a resistance at $55.92, the 286.4% projection level on the uptrend from $39.34, worked together with the resistance at $56.65 (hourly chart) to prevent oil from rising towards $57.56.
This $55.92 level is pivotal in suggesting a move over the next few days. A break will confirm a target of $57.56 as well as the continuation of the uptrend, while a failure could be followed by a drop towards $53.13.
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