SINGAPORE: US oil may rise into a range of $96.84 to $98.74 per barrel, driven by a wave c. This is the presumed third wave of an irregular flat from the Aug. 5 low of $87.01.
It is capable of travelling to $98.74, its 161.8% projection level.
A small high-low bottom forming between Aug. 17 and Aug. 22 suggests a target of $98.74 as well.
The steep but shallow correction on Wednesday could have prepared oil with stronger momentum to rapidly surge towards $98.74.
Immediate support is at $94.94, a break below may cause a fall to $93.77. On the daily chart, oil seems to have broken a resistance at $94.98.
It is expected to rise towards $100.46. The bullish divergence on the daily MACD has not been fully discounted. It suggests a further gain.
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The higher oil rises, the more likely a wave (C) from $123.68 has completed at $85.73. However, more convincing signals are still required to confirm a downtrend reversal.
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