SINGAPORE: US oil may retest a resistance at $88.62 per barrel, a break above which could lead to a gain to $89.45-$90.43 range.
The uptrend is riding on a wave 5, which may travel to $93, assuming that it is as long as the wave 1.
The correction triggered by the resistance at $88.62 seems to have ended around $86.38. A further drop is unlikely.
A break below $86.38, however, could cause a fall into a wide range of $83.69-$85.29.
On the daily chart, a fierce wave iii is unfolding towards $91.50-$93.82 range, as pointed by the upper trendline of an expanding wedge.
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The projection analysis on the uptrend from $61.96 also reveals a support at $86.30, close to $86.38 (hourly chart).
It is critical that oil remains above $86.30 to keep its uptrend steady.
A break below this level may be followed by a deep drop into $81.65-$84.52 range.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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