- A sudden break above $54.19 could confirm the continuation of the uptrend towards the range of $56.37-$57.72.
SINGAPORE: U.S. oil may break a support at $52.85 per barrel, and fall into $52.27-$52.59 range.
The contract failed to go above the Jan. 13 high of $53.93. The failure indicates the formation of a peak around this level or an extension of the correction towards $51.76.
A realistic target could be either $52.59 or $52.27, respectively the 38.2% and the 23.6% retracements of the uptrend from $51.76 to $53.93.
A break above $53.10 may lead to a gain into $53.42-$53.63 range. On the daily chart, the spinning top forming on Wednesday suggests a further consolidation below a resistance at $54.19.
This consolidation may match the one from the Dec. 23 low of $46.16 to the Jan. 4 high of $49.83. Under this scenario, oil may remain sideways for about a week, probably range-bound between $52.01-$54.19.
A sudden break above $54.19 could confirm the continuation of the uptrend towards the range of $56.37-$57.72.
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