SINGAPORE: US oil may test a support at $92.96 per barrel, with a good chance of breaking below this level and falling into $90.72-$91.84 range.
An expanding wedge may have completed, as it could be well broken down into five waves.
The wave v seems to have failed to break the upper trendline of the pattern.
The failure further suggests the completion of the wedge.
A preceding pennant indicates a target zone of $81.26-$83.50, as a result, the wedge is also considered as a bearish continuation pattern.
A break above $95.19 may lead to a gain to $96.57.
On the daily chart, oil climbed above a falling channel and moved into the range of the duplicated upper channel.
US oil may retest support at $87.11
It could be too early to target $104.39, as oil may pull back towards $91.74 first.
A false break above $91.74 will be confirmed if the pullback becomes too deep.
The downtrend from $104.39 is riding on a wave C, which is capable of travelling into a zone of $71.27-$83.92.
This bearish wave count will have to be revised, if the contract manages to hover above $91.74 over the next few days.
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