Asking if the rash is an allergic reaction is tough over the computer.
You'll have to hold it closer to the screen as its hard to see from
here! Seriously, the described rash sounds more like a local dermatitis.
Conceivably it could have happened from something in the wax, I doubt it
is the wax itself.  Sounds like it also could be herpes (cold sore)
starting.  Gert Walter