SINGAPORE: US oil may retreat moderately to $54.60 per barrel before retesting a resistance at $55.10, as suggested by its wave pattern and a projection analysis.

The resistance is identified as the 161.8% projection level of an upward wave C from $51.64. It triggered a wave 4, the fourth wave of the wave C.

This wave 4 will be totally reversed by an upward wave 5, which may start around $54.60. A break above $55.10 could lead to a gain into the $55.41-$55.92 range, while a break below $54.60 could cause a fall to $54.29.

On the daily chart, the uptrend has been confirmed, as oil has surpassed its Jan. 15 high of $53.83. A rising trendline points to a target zone of $56.37-$57.72.

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