SINGAPORE: Brent oil may test a resistance at $55.21 per barrel, as it has stabilized around a support at $54.62.

The support is provided by the 100% projection level of an uptrend from $50.56. It is strengthened by a similar one at $54.39, the 100% projection level of a downward wave c from $56.57.

Either the correction from the Jan. 13 high of $57.42 or its first part, has completed. This correction is expected to be totally or partially reversed.

A break above $55.21 could lead to a gain into $55.58-$56.17 range.

A break below $54.39 could cause a fall to $53.88. On the daily chart, market seems to be indecisive around a support at $54.50, the 261.8% projection level of an uptrend from $39.34.

This support helps stop the fall as well. Oil may hover above this level for one or two days before choosing its next direction.

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