SINGAPORE: US oil may test a support at $90.79 per barrel, a break below could open the way towards $89.59-$90.13 range.
The contract failed twice to break a resistance at $92.84, the 61.8% projection level of an upward wave (C) from $82.09.
This wave could either end around $92.84 or extend a lot beyond this level.
Regardless of the ending point, a decent correction could have started towards $89.59, as pointed by the lower trendline of a rising wedge.
Oil slips but holds near $100 a barrel as dollar weakens
A break above $92.84, which seems unlikely, may lead to a gain into $93.94-$95.38 range.
On the daily chart, oil narrowly missed its target of $94.37, which works as a resistance and may trigger a pullback towards a falling trendline.
A break above $94.37 could lead to a gain to $99.97.