US oil may rise to $92.03

SINGAPORE: US oil may rise to $92.03 per barrel, as it has broken a resistance at $90.43.

The break opened the way towards the next resistance of $92.03. The contract is riding on a wave 5, which sometimes is structured into three corrective waves.

The third wave, the wave c, is unfolding towards $93.32, assuming that it is roughly equal to the wave a. Support is at $90.43, a break below which could cause a fall into $88.62-$89.45 range.

On the daily chart, oil may pierce into a resistance zone of $91.50-$93.82, as pointed by the upper trendline of an expanding wedge.

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The risk for a deep drop will be increasing while oil approaches the trendline, as such a drop has been missing on the rise from the Dec. 20 low of $66.04.

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