SINGAPORE: US oil may test a resistance at $112.03 per barrel, a break above which could open the way towards $113.35-$114.68 range.

The rise on Monday confirmed the extension of the uptrend from the June 22 low of $101.53.

Driven by a wave (c), the trend may extend into $113.35-$114.68 range.

A break below the support at $109.27 may signal a completion of the wave (c) and the continuation of the downtrend from the June 14 high of $123.68.

US oil may test support at $106.10

On the daily chart, oil is presumably riding on a wave (C), which is expected to travel to $100.46 or a much lower level of $86.11.

It could be too rushing to conclude that the wave (C) has completed, simply based on the persistent bounces from the June 22 low of $101.53.

The bearish outlook will be reviewed once oil clears a resistance zone of $114.81-$116.15.