Brent oil may break support at $55.17
- The contract is highly likely to retest a support at $54.50, a break below which may cause a fall to $53.13.
SINGAPORE: Brent oil may test a support at $55.17 per barrel, with a good chance of breaking below this level and falling into $54.48-$54.91 range.
The capricious intraday moves over the past two days ended up with a close below a support at $55.60, the 38.2% retracement of the downtrend from $57.42 to $54.48.
The bounce from $54.48, which was driven by a wave B, may have ended. A downward wave C is unfolding towards $54.48. Oil is expected to break $55.17 and fall to $54.91 first.
A break above $55.60, now a resistance, may lead to a gain into $55.95-$56.30 range. On the daily chart, oil remained below a barrier at $55.92, the 286.4% projection level on the uptrend from $39.34.
The contract is highly likely to retest a support at $54.50, a break below which may cause a fall to $53.13.
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