SINGAPORE: US oil may test a resistance zone of $85.41-$85.67 per barrel, a break above which could lead to a gain to $87.33.
The contract has broken a resistance at $82.98, the 86.4% projection level of an uptrend from $84.12.
Based on this projection analysis, oil may rise more to $85.67.
Given that the fall from the October 2021 high of $85.41 has been almost reversed, this high is likely to be revisited.
Wave structure on the rise from $62.43 still indicates a corrective mode, even though the current wave (c) has travelled above a key level of $83.69.
A decent correct may occur around the resistance zone of $85.41-$85.67.
On the daily chart, oil is approaching the previous high of $85.41.
A deep correction could be due, which has been absent ever since the uptrend started at the Dec. 20, 2021 low of $66.04.
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