SINGAPORE: US oil may retest a resistance at $99.15 per barrel, a break above which could lead to a gain into $101.18-$102.43 range.
A rising wedge is believed to be developing, which consists of five small waves.
The wave e may have just started and is travelling towards $99.15-$101.18 range.
However, the market could move against this expectation, as sometimes a wedge only consist of three waves. Furthermore, the presumed wave d looks deeper than expected.
It is not very supportive of a further gain.
US oil may rise into $101.18-$102.43 range
A break below $95.87 would quickly switch the bullish mood to the bearish one, as the break could open the way towards $90.56-$93.84 range.
Once this target zone is fulfilled, there is little chance of the uptrend from $90.56 to extend.
On the daily chart, it is strange to note that the contract failed to break a resistance at $100.46.
The failure may result in either a further consolidation in the range of $94.98-$100.46 or a deep drop into $86.11 to $91.22 zone.
A break above this resistance could lead to a gain to $104.90.
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