U.S. oil remains neutral in a range of $83.76 to $85.44 per barrel, and an escape could suggest a direction.

The consolidation range looks unclear, which could be a part of a wave C from $88.17 and may travel to $81.03, or a part of wave B from $82.40 that may extend to $88.17.

A break above $85.44 could confirm a target zone of $86.50 to $87.87, while a break below $83.76 may be followed by a drop towards $81.03-$82.90 range.

On the daily chart, oil remains sideways in a similar range of $83.17 to $87.44. Trending signals will become clearer when the contract moves out of range.

A break above $87.44 may signal the progress of a wave c towards $94.37 while a break below $83.17 may open the way towards $76.25-$79.57 range.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

** No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

(Reporting by Wang Tao; Editing by Sherry Jacob-Phillips)

Published on October 26, 2022