SINGAPORE: US oil may test a resistance at $54.19 per barrel, a break above which could lead to a gain to $55.02.

The correction from the Jan. 13 high of $53.93 may have completed, as it has almost been reversed. The reversal signals a continuation of the uptrend.

Wave pattern suggests the progress of a wave 5, which may travel into $55.02-$56.37 range, based on the depth of the wave 4.

Support is at $53.41, a break below which could cause a fall into $52.01-$52.84 range. On the daily chart, the uptrend is developing within a rising channel, which defines a price band of $52.84-$56.37.

The trend looks steady and shows no sign of a reversal. The sideways move around $52.84 over the past two days could be a preparation for a stronger rally.

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