US oil may rise into $54.60-$55.10 range

SINGAPORE: US oil may rise into a range of $54.60-$55.10 per barrel, as it has broken a resistance at $53.78.

The resistance is identified as the 100% projection level of an upward wave C from $51.64.

Following its surge above $53.78, this wave is highly likely to travel to $54.60 or $55.10.

A break below $53.78, now a support, may cause a fall limited to the support zone of $53.27-$53.49. On the daily chart, the consolidation from the Jan. 15 high of $53.83 has been shaped into a wedge, which has been confirmed as a bullish continuation pattern. A rising trendline points a target zone of $56.37-$57.72.

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