SINGAPORE: US oil may rise to $92.86 per barrel, as it has broken a resistance at $90.13. The strong surge on Thursday confirmed a completion of a five-wave cycle from $104.39.

A retracement analysis reveals a target of $92.86, a break above which could lead to a gain to $95.06.

A break below $90.13, now a support, may trigger a drop to $88.45.

On the daily chart, the undervalued support at $86.11 proved to be stronger than expected.

US oil may retest support at $85.73

It may have triggered a decent bounce towards $94.98-$100.46 range.

The bullish divergence on the daily MACD suggests a further gain as well. Whether the whole downtrend from $123.68 has reversed is subject to a further observation.