Technicals-US oil may retrace into $100.98-$101.86 range before rising
XLE•U.S. oil may retrace before retesting resistance
SINGAPORE, Sept 11 (Reuters) - U.S. oil CLc1 may retrace into the range of $100.98-$101.86 per barrel, before retesting a resistance at $104.59.
A small five-wave cycle from $95.63 seems to have completed around $104.59. The bottom of wave 4 falls within the range of $100.98-$101.86, which serves as a target.
The market may have accumulated strong bullish momentum from the sharp rally during the previous trading session, to rise further. The uptrend is likely to resume upon the completion of the correction.
A break above $103.74 may lead to a gain into the $104.59-$105.97 range. On the daily chart, a wave c has travelled above its 100% projection level of $100.76. It is likely to drive the market toward the $110.87-$117.11 range.
A retracement analysis on the downtrend from $119.16 to $67.05 reveals a break above the 61.8% level of $99.25. The break increases the chance of the market revisiting the high of $119.16.
