Technicals-US oil may retest support at $100.98

On the daily chart, a dark cloud cover formed between Sept. 10 and Sept. 11, followed by a shooting star on Sept. 14.

Together, these bearish reversal patterns indicate a further slide over the next one or two days. Key resistance to watch is $104.63, which is roughly identical to $104.59 (hourly chart). A break could confirm a continuation of the uptrend.

U.S. oil CLc1 may retest a support at $100.98 per barrel, as a correction from $104.46 looks incomplete.

The correction has been shaped into a wedge, which might turn out to be a top pattern, as it formed after the completion of a five-wave cycle from $79.62.

Although the market is bouncing up, it is expected to end below $104.59. A break below $101.86 would suggest further slide toward the $100.12-$100.98 range.

Such a drop is considered deep enough to confirm the wedge as a top pattern. A break above $104.59 may lead to a gain into the $105.97-$106.83 range.

The upside, however, will not be limited to this level, as the wedge suggests a higher target of $110.