SINGAPORE: Brent oil may fall to $54.35 per barrel, driven by a wave C.

This is the third wave of a cycle from the Jan. 13 high of $57.42. It is capable of travelling to $53.66, its 100% projection level.

The contract is testing an immediate support at $54.78.

A drop to $54.60 could confirm a break below $54.78. Resistance is at $55.13, a break above which could lead to a gain to $55.47.

On the daily chart, oil is retesting a support at $54.50, the 261.8% projection level on the uptrend from $39.34. Following its earlier two failures, it may succeed this time.

Based on this projection analysis, oil may slide to $53.13, a target slightly lower than $53.66 (hourly chart).

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