US oil may rise into 95.67-$96.84 range

SINGAPORE: US oil may break a resistance at $93.77 per barrel, and rise into 95.67-$96.84 range.

The contract is riding on a wave c, the presumed third wave of an irregular flat from the Aug. 5 low of $87.01.

This wave is capable of travelling to $98.74, its 161.8% projection level.

A small high-low bottom forming between August 17 and August 22 suggests a target of $98.74 as well.

Support is at $92.68, a break below could confirm a target zone of $90.70 to $91.87.

US oil may rise into 92.86-$93.77 range

On the daily chart, oil is poised to test a resistance at $94.98, a break above could lead to a gain to $100.46.

The bullish divergence on the daily MACD suggests a further gain as well.

With the rise constantly gaining momentum, it could be the time to consider the completion of the wave (C) around $86.11.