SINGAPORE: US oil may break a support at $90.73 per barrel and fall towards $87.59, as suggested by a retracement analysis.

A strong wave 3 has completed. It is expected to be further reversed. The bounce triggered by the support at $90.73 has ended around a resistance at $92.67, following several failures of the contract to break this level.

With oil approaching $90.73 again, the chance of a break below this level is very high. A break above $92.67 could lead to a gain into the $94.31-$95.82 range.

Brent oil retest support at $91.57

On the daily chart, a top has formed in a strong resistance zone of $93.82-$96.69, near the upper trendline of an expanding wedge.

Oil failed to break $93.82 after a few attempts.

The failures confirmed the top.

However, wave pattern indicates a possible resumption of the uptrend when the current correction completes.

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