SINGAPORE: US oil is biased to break a support at $88.86 per barrel and fall towards $87.22, as suggested by a falling channel and a retracement analysis.
The current retracement is developing within a falling channel. Oil seems to be dropping towards $87.22-$88.86 range, after failing to break the channel line.
Resistance is at $92.53, a break above could open the way towards $95.82.
On the daily chart, it is clear that a top has formed in a strong resistance zone of $93.82 to $96.69, near the upper trendline of an expanding wedge, as oil has been remaining below this zone for about one week.
Wave pattern suggests the progress of a wave iv, which may end in the range of $84.52-$86.30, to be then reversed by an upward wave 5.
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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