US oil may retest support at $88.78

By Reuters News

SINGAPORE, Oct 5 (Reuters) - US oil may retest a support at $88.78 per barrel, a break below which may trigger a fall to $87.62.

A wave (c) from $93.69 looks incomplete, even though it has been disrupted twice by the support; it's at its 61.8% projection level. The bounce from $88.06 seems to have completed around $91.82.

The market may fall toward this Oct. 2 low. A break above $91.82 may led to a gain into $92.53-$93.69 range. On the daily chart, the bounce triggered by support at $90.02, a 61.8% retracement, has formed a wedge.

Because the pattern formed after a short downtrend from $106.75, it may be a bearish continuation pattern.

* 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. ​

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