US oil to retrace into $83.45-$84.35 range

SINGAPORE, Nov 12 (Reuters) - US oil is expected to retrace into a range of $83.45 to $84.35 per barrel, following its failure to break a resistance at $88.61.

The failure suggests a completion of the bounce from $83.88, or the first part of the bounce. Considering the weakness of the bounce, the market may retrace toward the $83.45 to $84.35 range first.

It is not very clear if the bounce would extend. An extension would be suggested by a stabilization of the market around $84.35.

A break below $83.45 could open the way toward $78.18. On the hourly chart, the market is expected to test a support at $85.18.

A break could trigger a fall into the range of $82.85 to $84.02, formed by the 161.8% and the 150% projection levels of a downtrend from $98.85.

* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are published exclusively on the Workspace - platform provided by London Stock Exchange.

** No information in this analysis should be considered as being business, financial, or legal advice. 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.