SINGAPORE: US oil may test a support zone of $85.29-$85.67 per barrel, a break below which could open the way towards $83.69-$84.12 range.
The rise looks exhausted, as confirmed by the bearish divergence on the hourly MACD.
The resistance zone of $87.86-$88.36 may have triggered a deep correction which has been missing ever since the rise from the Jan. 3 low of $74.27.
Only a break above this resistance zone could the continuation of the uptrend be confirmed.
On the daily chart, the current fall is tentatively classified as a pullback towards $84.52.
A rising channel suggests an extension of the pullback towards $81.65. Wave pattern indicates the progress of a wave iv, the forth wave of a five-wave cycle from the Dec. 2, 2021 low of $62.43.
Oil's bull run rolls on despite possible China reserves release
This wave may complete around $81.65, to be reversed by the final wave, the wave v.
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