US oil may rise into 92.86-$93.77 range

SINGAPORE: US oil may break a resistance at $91.87 per barrel, and rise into 92.86-$93.77 range.

The contract is riding on a wave c, the presumed third wave of an irregular flat from the Aug. 5 low of $87.01.

This wave is capable of travelling to $93.77, its 100% projection level.

Before fulfilling this target, the wave c has to overcome a lower barrier at $92.86. Support zone is from $90.13-$90.70, a break below which may trigger a drop to $88.45.

US oil may test support at $88.45

On the daily chart, the support at $86.11 proved strong. Oil failed to break this level three times. Apparently, a bottom is developing.

The bullish divergence on the daily MACD suggests a slim chance of oil to fall below $86.11 in short term.

Most likely, the contract would climb towards $94.98-$100.46 range.