SINGAPORE: US oil may edge up into a range of $91.73-$92.45 per barrel, before retesting a support at $90.79, following its failure to break a resistance at $92.84.
The failure suggests a reversal of the uptrend from $82.09 which could either end around $92.84 or extend a lot above this level.
Regardless of its final ending point, the trend seems to have temporarily finished.
As far as Monday and Tuesday are concerned, oil may consolidate in the range of $90.79-$92.48.
A rising wedge indicates a further drop towards $88.73 upon the completion of the consolidation.
US oil may retest resistance at $90.13
A break above $92.48, which seems unlikely right now, may lead to a gain to $95.38.
On the daily chart, the big white candlestick is interpreted as an over-optimistic signal.
Oil simply reaped a gain in one day, which was supposed to be an achievement within a few days.
The rise looks too fast to sustain, in view of its zigzagging mode.
Oil may pull back towards the trendline before heading towards $94.37.
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