SINGAPORE: US oil may test a support at $88.36 per barrel, a break below which could cause a drop into $86.47-$87.33 range.
The fall from the Thursday high of $91.74 confirmed a continuation of the downtrend from the Feb. 4 high of $93.17.
The trend consists of three waves.
The current wave c is expected to travel below $88.36, as it could be roughly equal to the wave a. Oil broke a rising trendline again, the break confirms a reversal of the uptrend from $66.04.
Resistance is at $90.02, a break above which may lead to a gain to $91.37.
US oil may test resistance at $91.37
On the daily chart, the bounce triggered by the support at $89.17 has ended around a resistance at $91.50.
Oil is poised to retest this support.
A rising channel indicates a target of $86.30, around which, the uptrend may resume.
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