US oil targets $118.14

SINGAPORE: US oil may break a resistance at $116.04 per barrel, and rise to $118.14.

The contract is riding on a wave c from $109.23, which may either end around $118.14 or extend to $123.65.

This wave is a part of a bigger wave (c) from $105.13, which is expected to travel to $122.49. Both $123.65 and $122.49 look too far away to be realistic.

US oil may retest resistance at $114.14

A proper target would be $118.14. Support is at $114.74, a break below which could cause a fall into $112.63-$113.69 range.

On the daily chart, oil is retesting a resistance at $116.15. Given that it failed twice to break this level, it may succeed this time.

A break will be a milestone to bulls, as it will increase the chance of a further gain to $130.50.