SINGAPORE: US oil is expected to break a resistance at $120.24 per barrel and rise into a range of $121.54-$123.65.

The correction triggered by the resistance ended at the Tuesday low of $117.14, as confirmed by its three-wave structure. The uptrend could have resumed.

The trend is well controlled by a set of projection levels on the uptrend from $109.23.

Oil prices advance on low oil inventories expectation

The $123.65 level will be targeted once oil stands firm above $120.24. A bullish flag suggests a much higher target of $129.

Key support is at $118.14, a break below which could cause a fall into $114.74-$116.93 range.

On the daily chart, oil is poised to retest a resistance at $121.63.

The long-shadowed doji on Tuesday suggests a strong support around $116.15. Oil may not approach this level again.