SINGAPORE: US oil may gain more into a range of $116.14 to $118.61 per barrel, as it has broken a key resistance at $112.16.
The current rise is well-controlled by a set of projection levels on the uptrend from $95.28. After rising above the 100% level of $112.16, the contract has a better chance of climbing into $118.61-$122.59 range.
Immediate support is at $113.34, a break below may open the way towards $109.86-$112.16 range.
On the daily chart, a retracement analysis on the fall from $130.50 reveals a break above a resistance at $112.02.
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Oil is poised to test the next key resistance at $116.38, a break above which could confirm the reversal of the downtrend from the high of $130.50.
The contract may revisit this high soon.
A failure to overcome this barrier would increase the chance of the downtrend from $130.50 to resume.
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