US oil may retest a resistance at $87.86 per barrel, a break above which could lead to a gain to $89.45.
The rise on Wednesday confirmed an extension of the uptrend, which is riding on a wave 5.
Based on the length of the wave 1, the wave 5 may travel to $93, close to the 261.8% projection level of $94.60.
This wave became weak around $87.86, but it is unlikely to complete around this level and become a failed fifth wave.
Oil is expected to stabilize around $86.38 and resume its uptrend.
A break below $86.38 may cause a fall into a range of $83.69-$85.29. On the daily chart, a powerful wave iii is unfolding towards $91.50-$93.82 range, as pointed by the upper trendline of an expanding wedge.
Oil climbed above a resistance at $86.30 again. It has a better chance of rising to $89.17 first.
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.
Tags Business Recorder United States of America
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