SINGAPORE: Signals are mixed for US oil, and a further development of the chart will suggest a direction.
The contract seems to be consolidating within a small triangle.
Until it rises above $104.45 or breaks below $97.50, the nature of this pattern will remain unknown.
The consolidation within this triangle has been controlled by a set of projection levels on a wave (c) from $108.75.
Brent oil may gain more to $113.05
Unfortunately, it is not very clear if this wave has completed around its 61.8% projection level of $97.50.
The current speculation is this wave (c) may consist of five smaller waves.
The current wave c could travel to $98.16, to be then partially reversed by a wave d.
The sideways move may last a few days. On the daily chart, the consolidation is confined within a bigger triangle, which suggests a fall towards $93.79.
However, this target won't become valid until oil breaks $98.16.
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