SINGAPORE, July 22 (Reuters) - U.S. oil CLc1 is expected to retrace into a range of $81.94-$83.26 per barrel, as it faces strong resistance at $85.38.

Identified as the 161.8% projection level of an uptrend from $70.80, the barrier is likely to stop the rise and trigger a decent correction.

The resistance itself may not be sufficient to cause a correction. But when supported by the multiple bearish divergences on the hourly MACD, the possibility will be high.

On the daily chart, a projection analysis marks a similar resistance at $86.48, the 61.8% level. This resistance is working together with the one on the hourly chart to stop a further rise.

Unless the bullish momentum turns out to be exceptionally strong, a correction will be highly likely.

* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - London Stock Exchange product.

** 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. ​

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