SINGAPORE: US oil may retest a resistance at $118.14 per barrel, a break could lead to a gain to $120.24.
The surge from the Thursday low looks strong enough to confirm a resumption of the uptrend from $105.13.
The trend has been driven by a wave C, which is expected to travel to $122.49, its 100% projection level.
Support is at $116.04, a break below which may be followed by a shallow drop to $114.74.
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The pattern from the May 31 low of $114.15 will be regarded as an inverted head-and-shoulders, once oil falls to $114.74.
On the daily chart, oil climbed above a resistance at $116.15 again. It is poised to retest a resistance at $121.63.
Ideally, oil could close above the open price of $117.69 on Friday, so that a white candlestick could be formed.
This candlestick would form a convincing bullish pattern together with the hammer on Thursday.
As long as oil closes above $116.15, the bullish view will be maintained.
A close below $114.80, the open price on Thursday, would be bearish.
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