SINGAPORE: Brent oil may test a support at $55.17 per barrel, a break below which could cause a fall into $54.48-$54.91 range.

The contract failed twice to break a resistance at $56.30, the 61.8% retracement of the downtrend from $57.42 to $54.48. The failures suggest an extension of the downtrend from $57.42.

Driven by a wave C, this trend may extend below $54.48. Resistance is at $55.95, a break above which could lead to a gain into $56.30-$56.73 range.

On the daily chart, oil failed to overcome a barrier at $55.92, the 286.4% projection level on the uptrend from $39.34.

The failure could have triggered a drop towards $54.50.

A break above $55.92 will open the way towards $57.56.

The break will be confirmed only when oil rises above the Wednesday high of $56.49.

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