SINGAPORE: Brent oil may retest a support at $48.42 per barrel, a break below could cause a fall into $47.49-$47.94 range.

The support is provided by the 261.8% projection level on an uptrend from $43.08.

The correction from the Dec. 4 high of $49.92 consists of three waves. So far, only two have unfolded.

The bounce from the Monday low of $48.40 was driven by the second wave.

The third wave, the wave c, is expected to travel into the target zone of $47.49-$47.94.

Resistance is at $48.92, a break above which could lead to a gain into $49.20-$49.50 range.

On the daily chart, a bearish divergence formed on the RSI.

The divergence suggests that oil may pull back again towards a support zone of $46.53-$47.41.

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