SINGAPORE: US oil may retest a resistance at $114.14 per barrel, a break above which could lead to a gain to $115.56. The drop from $115.56 has been deeply reversed.
The reversal signals a continuation of the uptrend from the May 10 low of $98.20. The deep correction triggered by the resistance at $114.14 was indeed due to a contract switch on the continuous chart.
On the hourly chart of July contract, the uptrend from $103.24 remains steady and is extending towards $113.20.
US oil may test resistance at $113.10
On the daily chart, the hammer on May 19 and the white candlestick on May 20 confirm a completion of the brief correction from the May 17 high of $115.56.
The drop from the May 20 high of $114.04 is classified as a market noise, which has little impact the uptrend.
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