SINGAPORE: US oil may test a support at $86.38 per barrel, a break below which could cause a fall into $83.69-$85.29 range.
A five-wave cycle from $66.04 may have completed, as suggested by the zigzagging rise within a small channel and the bearish divergence on the hourly RSI.
The wave 4 ended at $81.90, which works as a target.
A realistic target will be either $85.29 or $83.69. Resistance is at $88.62, a break above which could lead to a moderate gain into $89.45-$90.43 range.
On the daily chart, oil failed a few times to break a resistance at $89.17, around which a temporary top could have formed.
Wave pattern suggests the progress of a wave iv, which may travel into the range of $81.65-$84.52.
The uptrend may resume upon the completion of the wave iv.
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