Technicals-US oil may rise toward $86.53
XLE•U.S. oil retests resistance near $85.53 to $85.67
U.S. oil CLc1 may break a resistance zone of $85.53 to $85.67 per barrel, and rise toward $86.53.
After failing to break the zone at its first attempt, the contract is retesting this range. Its persistence indicates an extension of the uptrend toward $86.53, the 161.8% projection level of the rise from $80.68.
Support is at $84.82; a break below could trigger a fall into the range of $83.80 to $84.29. On the daily chart, the contract has broken resistance at $84.41.
The break, along with its ability to hover above a rising trendline, suggests a continuation of the uptrend from $67.04. A projection analysis reveals a target zone of $87.53 to $90.66.
A wedge suggests a much higher target range of $94.52 to $97.16, subject to a break above $87.53.
