SINGAPORE: US oil may test a support at $51.35 per barrel, a break below could cause a fall to $50.56.
Oil failed to revisit the Jan. 13 high of $53.93. The failure suggests the formation of a temporary top around this level.
A retracement analysis on the uptrend from $47.18 reveals a break below the support at $52.34.
The next support will be at $51.35.
A break above $52.34, now a resistance, could lead to a gain to $52.94-$53.46 range. On the daily chart, the bearish engulfing pattern forming between Jan. 14 and Jan. 15 suggests a further drop towards the range of $50.66-$51.34 as well.
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