SINGAPORE: Brent oil may slide more to $54.07 per barrel, as suggested by its wave pattern and a projection analysis.

The drop from the Jan 13 high of $57.42 consists of three waves.

The current wave c is expected to travel to $54.39, its 100% projection level.

A fall to $54.39 will increase the chance of a further loss to $54.07.

The pattern from the Jan. 8 to Jan. 15 looks like a head-and-shoulders, which suggests a lower target around $53.

Resistance is at $55.21, a break above could lead to a gain into $55.58-$56.17 range.

On the daily chart, even though it is too early to assume a trend reversal, the big black candlestick on Jan. 15 does suggest a further dip. Most likely, oil would fall to $53.13, the 238.2% projection level of an uptrend from $39.34.

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