US oil may retest resistance at $91.46
USO•US oil may retest resistance at $91.46 per barrel; a break above could lead to a gain to $94.75. The analysis says the downtrend will not be confirmed as resumed until prices break below $88.71.
1. Resistance and support levels
US oil may retest resistance at $91.46 per barrel, and a break above that level may lead to a gain to $94.75. The bounce from the September 23 low of $88.71 looks incomplete and may consist of three waves, with the current wave potentially reaching $96.54.
2. Downtrend not confirmed
The analysis says the downtrend is expected to resume, but that will not be confirmed until oil breaks below $88.71. On the daily chart, the contract briefly fell below support at $90.02, then stabilized around that level instead of falling toward $86.06.
