SINGAPORE: US oil may test a resistance at $87 per barrel, a break above which could open the way towards $88.73-$89.54 range. Oil failed to break a key support at $82.89.

The failure, along with the following strong rise, suggests an extension of the uptrend from $76.25.

A projection analysis on the rise from $82.09 reveals its close relation to the preceding uptrend from $76.25.

The pivotal level to watch is $87, only a break above which could confirm a wave C.

A break below $84.95 could signal a continuation of the downtrend from $93.64, towards $82.09.

On the daily chart, a retracement analysis on the fall from $123.68 reveals a support at $83.17, which accounts for the bounce on Wednesday.

US oil may retest support at $85.69

The relation of the current move to the fall suggests an extension of the bounce from $76.25.

Even though the downtrend from $123.68 looks incomplete, it may not resume until the bounce completes.