SINGAPORE: US oil may test a resistance at $91.37 per barrel, a break above which could lead to a gain to $92.72.
The fall from the Feb. 4 high of $93.17 may consist of three waves. The second wave, the wave b, is unfolding. It is generally difficult to pinpoint the peak of this wave.
Most likely, the wave b could end around $91.37, to be reversed by the wave c.
Support is at $88.36, a break below which could confirm the continuation of the downtrend towards $85.92.
On the daily chart, oil temporarily stabilized around a support at $89.17.
Even though this support could trigger a bounce towards $91.50, a bearish target of $86.30 remains intact, as indicated by a rising channel.
The upper trendline of an expanding wedge proved to be effective in causing deep drops.
Oil is unlikely to break the spell this time.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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