US Oil May Bounce to $91.89-$93.14 Range
US Oil May Bounce to $91.89-$93.14 Range
U.S. crude oil (NYMEX:CL1!) may bounce into a range of $91.89 to $93.14 per barrel, following its stabilization around a support at $88.38.
Technical Indicators
The stabilization is accompanied by a bullish divergence on the hourly RSI. These signals suggest a reversal of the downtrend from $109.54. The trend could be broken down into five small waves, a structure which also indicates the completion of the trend.
A break below $88.38 may trigger a fall towards $85.43. On the daily chart, a retracement analysis on the uptrend from $55.29 reveals a support at $87.56, which works together with those on the hourly to cause a bounce.
Market Outlook
It must be noted that the main trending signals remain unclear, as the market is consolidating within a huge wedge. Whether this pattern turns out to be bullish or bearish will depend on which trendline is broken.
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