SINGAPORE: US oil may break a resistance at $88.39 per barrel and rise into the $89.96-$90.19 range to complete a wave c.
This wave has travelled to its 138.2% projection level of $88.39.
A retracement analysis on the downtrend from $90.19 suggests an extension of this wave towards $89.96, as the 76.4% retracement of $86.90 has been broken.
Support is at $87.41, a break below could open the way towards the range of $85.83 to $86.81.
A further drop below $85.83 could confirm the completion of the wave c.
The target of $89.96 will have to be aborted.
US oil may rise into $88.39-$89.96 range
On the daily chart, oil has broken a resistance zone of $85.59 to $86.11.
The break opened the way towards $89.20.
The current bounce observes two sets of projection levels: one is on the wave C from $104.46, the other the wave (C) from $123.68.
The resistance zone of $91.22 to $92.80 overlaps with the one of $89.96-$90.19 on the hourly chart.
The bounce is highly likely to end around $91.22.
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