US oil may rise into $101.18-$102.43 range
SINGAPORE: US oil may break a resistance at $99.15 per barrel, and rise into $101.18-$102.43 range.
The gain on Wednesday confirmed an extension of the short uptrend from the July 25 low of $96.70.
Whether the extension is of the bigger trend from $90.56 is subject to a further observation. Driven by a wave c, oil may climb into $101.18-$102.43 range.
The pattern from the July 6 low of $95.10 looks like an inverted head-and-shoulders, which will be confirmed when oil rises above $104.46.
The pattern suggests a much higher target of $123.
Support is at $97.51, a break below may trigger a drop into $93.84-$95.87 range.
US oil may retest support at $93.84
On the daily chart, the contract is poised to retest a resistance at $100.46, a break above could lead to a gain to $104.90.
A duplicated falling channel suggests a higher target of $109.33.
Even though not all doubts have been cleared on the continuation of a long-term uptrend, the short-term focus is unarguably on the following gains towards $104.90-$109.33 range.
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