U.S. oil may retest resistance at $92.09

SINGAPORE, Sept. 3 (Reuters) - U.S. oil CLc1 may retest a resistance of $92.09 per barrel, a break above which could lead to a gain into the $92.89-$93.74 range.

The correction triggered by the resistance has been almost reversed. The reversal signals a continuation of the uptrend from $79.62.

A downward wave 4 might have driven the correction, which is the fourth wave of a five-wave cycle from $86.22. This wave is expected to be reversed by the following wave 5, which is capable of travelling far above $92.09.

Immediate support is at $90.65, a break below which may cause a shallow correction into the $89.27-$89.70 range. On the daily chart, a wedge has been confirmed, suggesting a target range of $94.52 to $97.16.

A projection analysis on a wave (c) from $74.30 indicates the target of $94.52, as this wave has travelled above the key resistance at $90.66.