SINGAPORE: US oil may retest a resistance at $90.13 per barrel, a break above which could lead to a gain to $91.02.
The uptrend from $82.09 has been developing within a rising wedge, the upper trendline of which suggests a target of $91.02.
Five waves make up the trend.
The wave E is unfolding towards the target.
Until oil goes above the Oct. 10 high of $93.64, it would be hard to confirm the extension of the uptrend from the Sept. 26 low of $76.25.
A break above $91.02, which seems unlikely, could lead to a gain to $92.45.
Support is at $88.70, a break below which could open the way towards $87.27-$87.87 range.
US oil may drop into $85.67 to $86.38 range
On the daily chart, oil broke a falling trendline and a resistance at $87.44. It is supposed to rise towards $94.37.
However, the performance of the contract on Thursday so far has not been very convincing to suggest such a gain.
The market opened low and remains below the Wednesday high of $90.36.
It looks like its going to have a pullback towards the trendline, which may occur either during the European session or on Friday.