U.S. oil may stabilize around $104.59 and retest $106.83

A break below $104.59 may cause a drop into the $102.88-$103.74 range. A further drop below $101.86 would suggest the wedge as a bearish pattern. A target of $98.74 will be established accordingly.

On the daily chart, the dark cloud cover and the shooting star forming below $104.63 have been invalidated, as the market has climbed above this resistance, identified as the 114.6% projection level of wave c from $74.30.

This wave is expected to travel into a range of $110.87-$117.11.

U.S. oil CLc1 may stabilize around a support at $104.59 per barrel and retest a resistance at $106.83.

The fall triggered by resistance is a pullback toward a bullish wedge, suggesting a target around $110.