SINGAPORE: US oil may rise into the $89.96-$90.19 range, to complete a wave c from $79.14.

This wave has travelled above its 138.2% projection level of $88.39.

It is extending towards its ultimate target of $89.96.

A retracement analysis on the downtrend from $90.19 reveals a break above $88.29, the 86.4% level, which is the last barrier towards $90.19.

Bearish divergence formed on the hourly MACD, which confirms an exhaustion of the wave c.

US oil may rise into $89.96-$90.19 range

This signal agrees with the projection analysis that this wave is ending.

A break below $88.29 may be followed by a drop into $85.83-$87.41 range.

On the daily chart, oil faces a resistance at $89.20.

The hourly chart readings suggest a brief piercing above this level.

However, to overcome this barrier and rise towards $91.22 seems to be unrealistic to the market.

The spinning top on Thursday represents a withdrawal of bulls.

There simply lacks a sentiment to drive the price far into $91.22-$92.80 range.