SINGAPORE: US oil is expected to fall into a range of $98.33-$99.72 per barrel, following its failure to break a resistance at $105.59.
The failure, along with the drop from the July 8 high of $105.24, suggests the completion of a bounce from the July 6 low of $95.10.
Even though a short trendline points at a target of $106.71, it is really doubtful that this target could be fulfilled, unless oil could break an immediate resistance at $104.20.
On the daily chart, oil is riding on a wave (C), which is expected to extend to $86.11.
US oil may retest resistance at $104.20
Only 76.4% of this target has been achieved.
With oil having failed to break $104.90, it is poised to fall towards the support at $94.98.
A break above $104.90 could raise some doubt on the current bearish outlook.
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