SINGAPORE: US oil may stabilize around a support at $107.74 per barrel and retest a resistance at $110.39.

The support is identified as the 100% projection level of a wave c from $118.87.

This wave demonstrates a strong momentum.

It may extend into $100.80-$103.45 range.

US oil to test support at $114.41

However, this wave may complete around $107.74 as well. Regardless of the ending point.

A bounce has been triggered by the support at $107.74.

It may consists of three waves. So far, only one wave has unfolded.

A break above $110.39 may lead to a gain into $112.03-$113.35 range.

On the daily chart, the correction from $130.50 may have extended, as confirmed by the deep fall on June 17.

Driven by a wave (C), oil could fall to $92.93.