SINGAPORE: US oil may test a support at $89.96 per barrel, a break below which could open the way towards $88.39.
A wave c from $79.14 has completed around a resistance at $93.50, as confirmed by a small double-top around this level.
The pattern suggests a target of $89.48. Once oil fulfils this target, it is likely to slide more towards $87.41-$88.39 range.
Resistance is at $91.61, a break above which could lead to a gain to $92.52.
On the daily chart, oil failed to break a resistance zone of $92.80-$94.98.
The failure triggered a pullback towards a falling trendline.
US oil may fall into $89.96-$90.94 range
An immediate target is $89.20, a break below which could be followed by a drop to $85.59.
It must be noted that the pullback may turn out to be a continuation of the downtrend, which looks incomplete, as both the wave C and the wave (C) are yet to travel to their projected targets.
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