U.S. oil may retest resistance at $87.17

SINGAPORE, Aug 21 (Reuters) - U.S. oil October contract CLV26 may retest a resistance at $87.17 per barrel, with a good chance of breaking above it and rising toward the $88.19-$89.59 range.

A projection analysis reveals an extension of this wave above its 61.8% level of $85.67. This wave could travel further to the 100% level of $89.58.

Support is at $85.67, a break below which may trigger a drop to $84.46. On the hourly continuous chart CLc1, the contract stabilized above a support zone of $86.29-$86.60 and a rising trendline.

The uptrend from $80.13, riding on wave c, looks intact. It may develop toward $90.60. On the daily chart, the market has pierced above a resistance at $87.53.

However, it failed to maintain above this level due to a contract switch. Given that both the continuous and the October hourly charts look bullish, the bearish indication on the daily chart will be ignored.