SINGAPORE: US oil may peak around a key resistance at $83.69 per barrel, as suggested by its wave pattern and the hourly MACD.
A five-wave cycle from $66.04 is ending, as the fifth wave labelled v looks exhausted around $83.69. This wave, along with the several preceding waves, has been unfolding within a rising wedge which looks like a top pattern.
The bearish divergence on the hourly MACD became valid again, after temporarily being violated.
US oil may test resistance at $82.28
These bearish readings simply can't be ignored even though oil has broken a resistance at $82.28.
On the daily chart, the rise from $62.43 will seem to have been driven by a wave B, until oil climbs far above $85.41.
This wave is highly likely to end below $85.41, to be totally or partially reversed by a wave C.
A decent correction to $76.63 may still occur if the wave count turns out to be incorrect.
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.
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