SINGAPORE: Brent oil may drop to a range of $54.40-$54.83 per barrel, as suggested by its wave pattern and a projection analysis.

The correction from the Jan. 13 high of $57.42 has extended.

It is driven by a wave c which is capable of travelling to a range of $53.71-$54.83, formed by its 100% and 61.8% projection levels.

Resistance is at $56.21, a break above which may lead to a gain to $56.64. A further rise would confirm a continuation of the uptrend. It could be extended to $57.42.

On the daily chart, oil seems to have failed to break a resistance at $55.92, the 286.4% projection level on the uptrend from $39.34. The failure has caused a drop towards $54.50.

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