SINGAPORE: US oil may test a resistance at $107.02 per barrel, a break above which could lead to a gain into $108.68-$111.37 range.

The strong gain on Wednesday suggests an extension of the uptrend from $92.93, which could be developing within a rising channel.

A total of five waves may make up the trend. The wave (e) is unfolding towards $111.37, as pointed by the channel.

Immediate support is at $104.33, a break below which may cause a fall into $99.97-$102.15 range.

US oil may test support at $99.97

On the daily chart, a projection analysis on the downtrend from $116.64 still works perfect to reveal supports and resistances.

After breaking above resistance at $102.52, oil has a better chance of rising into $107.92-$111.24 range.

The bullish engulfing pattern forming between Tuesday and Wednesday suggests a rise on Thursday as well.