US oil to retest resistance at $89.33
SINGAPORE, Nov 13 (Reuters) - US oil is expected to retest resistance at $89.33 per barrel, a break above which could lead to a gain into the $89.99-$91.84 range.
The resistance is identified as the 86.4% projection level of a wave c from $85.14, which is capable of travelling to its 100% projection level of $89.99.
The upside, however, may not be limited to $89.99, as the pattern from the November 10 low of $83.88 looks like a high-low bottom, which suggests a target of $91.84.
Support is at $87.52, a break below which may trigger a fall into the $85.14-$86.63 range. On the daily chart, a temporary bottom might be forming above the support zone of $83.45-$84.35.
Given that the market has briefly pierced above a resistance at $88.61, it may extend gains into the $90.52-$93.77 range.
* 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.