The resistance is identified as the 50% projection level on a downtrend from $58.82. The bounce from the Aug. 15 low of $53.77 has extended slightly.

The bold speculation is the bounce may end around $55.71, as the fall from the Aug. 13 high of $57.47 looks more like a continuation of the downtrend from $60.94 than a correction against the uptrend from $50.52.

On the daily chart, the bounce was due to a support range of $54.48-$54.83, formed by the 50% retracement on the uptrend from $42.36 to $66.60 and the 38.2% projection level of a wave C from $60.94.

So long as oil remains below the falling trendline, the wave C is likely to extend to $51.05 again. A break above $57.34, however, will open the way towards $60.88.

* The analysis is based on delayed data, prediction may be affected. Charts are not available in reports received in email box through "Alert". To get charts, use the news code of  to retrieve the original reports.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. **