SINGAPORE: US oil may retest a support at $51.68 per barrel, a break below which could cause a fall to $51.09.

The support is identified as the 76.4% projection level of a downward wave C from $53.58. This wave is expected to travel to $51.09.

A moderate bounce has been triggered by the support. Most likely, this bounce would end below $52.33. On the daily chart, the contract is retesting a support at $51.35.

After its failed attempt on Jan. 22, oil may break this level and fall towards $50.56.

The correction from $53.93 has lasted a much longer time than expected.

Chances are this correction could be against the uptrend from the Nov. 2, 2020 low of $33.64.

Under this scenario, the correction could extend to $47.18.

A further observation is needed to draw a conclusion.

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