SINGAPORE: US oil may test a support at $58.13 per barrel, a break below which could cause a fall into the $56.85-$57.41 range.

The uptrend from $51.44 has reversed, as confirmed by the current deep fall. Five waves make up the trend. The fourth wave, the wave 4, ended at $57.41, which works as a target.

A retracement analysis reveals an immediate support at $58.13, the 38.2% level, a break below which could open the way towards $56.85. A bounce from the current level may be limited to $59.33.

On the daily chart, a rising channel suggests a further drop into the $56.37-$57.72 range. As long as oil remains within the channel, the uptrend will be steady.

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