SINGAPORE: US oil may break a resistance at $108.47 per barrel, and rise into $111.16-$112.82 range.
The strong gain on Tuesday confirmed the progress of an extended wave (5), which could be very impulsive. The following rise could become explosive.
It is generally difficult to figure out the peak of the extended wave five.
A projection analysis only roughly suggests a target of $115.52.
Correction from the current level may be shallow, to be limited to the support zone of $101.42-$104.12.
On the daily chart, oil has broken a falling trendline. It is poised to rise into $114.89-$117.12 range.
The range is formed by the 76.4% retracement of the downtrend from $147.27 to $10.07 - the presumed ending point of the downtrend and the starting point of a wave (1), and the 261.8% projection level of the uptrend from $33.64.
With oil having climbed far above a key barrier at $94.86, the 61.8% retracement, it has a better chance of revisiting its 2008 high of $147.27.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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