SINGAPORE: Brent oil may break a resistance at $56.30 per barrel, and rise towards the range of $56.73-$57.42.

The correction from the Jan. 13 high of $57.42 has been shaped into a wedge, which has been almost confirmed as a continuation pattern, indicating a target around $58.

The confirmation will be when oil breaks $56.30. Support is at $55.60, a break below which may cause a fall into $54.91-$55.17 range.

On the daily chart, oil failed twice to break a support at $54.50, the 261.8% projection level on the uptrend from $39.34. The failures suggest the formation of a double-bottom.

The uptrend will remain intact, unless oil breaks the support. The hammer on Jan. 22 and the white candlestick on Monday formed a bullish reversal pattern, indicating the completion of the fall from $57.42.

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