SINGAPORE: US oil may hover above a support at $88.10 per barrel on Wednesday or bounce towards $90.22 before falling again.
The support is identified as the 38.2% retracement of a wave c from $79.14, which has peaked at $93.64.
The corrective nature of the uptrend from $76.25 suggests a return of the price to this level in due course.
A realistic target will be either $86.39 or $84.68, both of which will be confirmed when oil break the support at $88.10.
A break above $90.22 could signal the continuation of the uptrend towards $91.52-$92.63 range.
US oil may test support at $89.96
On the daily chart, the two black candlesticks on Monday and Tuesday confirmed a reversal of the bounce triggered by the support at $77.24.
The support is established at the 123.6% projection level of a wave (C) from $123.68, which looks far from complete.
This wave may eventually travel into a range of $62.89 to $71.76.
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