SINGAPORE: US oil may test a resistance at $112.03 per barrel, with a good chance of breaking above this level and rising towards $113.35-$114.68 range.
The contract stabilises around a support at $107.74, the 100% projection level of a wave c from $118.97. This wave enjoys such a strong momentum that it may extend into $100.80-$103.45 range.
However, the market was much over-sold and is subject to a bounce.
A falling channel indicates a target of $113.35.
US oil to retest resistance at $110.39
A break below $110.39 may trigger a drop into 107.74-$109.27 range.
On the daily chart, the deep fall on June 17 suggests an extended correction from $130.50. The correction consists of three waves, with the wave (C) unfolding towards $86.11-$100.46 range.
A fall below the June 17 low of $108.25 could confirm the continuation of the wave (C) towards the target zone.
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