These supports are identified as the 38.2% and the 23.6% retracements on the downtrend from $60.94 to $50.53. Oil failed to break a resistance at $56.96 after a few attempts. The failures, along with the deep fall on Aug. 30, confirm the completion of a bounce from $50.53.

The downtrend from $60.94 could have resumed. It is just a matter of time that oil could revisit the low at $50.53. Resistance is at $55.74, a break above which could lead to a gain to $56.96.

On the daily chart, oil is testing a support range of $54.48-$54.83, formed by the 50% retracement on the uptrend from $42.36 to $60.94 and the 38.2% projection level of a downward wave C from $60.94.

This wave is capable of travelling to $51.05, its 61.8% projection level.

* 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. **