US oil may rise into $101.18-$102.43 range

SINGAPORE: US oil may break a resistance at $99.15 per barrel, and rise into $101.18-$102.43 range.

The gain on Wednesday confirmed an extension of the short uptrend from the July 25 low of $96.70.

Whether the extension is of the bigger trend from $90.56 is subject to a further observation. Driven by a wave c, oil may climb into $101.18-$102.43 range.

The pattern from the July 6 low of $95.10 looks like an inverted head-and-shoulders, which will be confirmed when oil rises above $104.46.

The pattern suggests a much higher target of $123.

Support is at $97.51, a break below may trigger a drop into $93.84-$95.87 range.

US oil may retest support at $93.84

On the daily chart, the contract is poised to retest a resistance at $100.46, a break above could lead to a gain to $104.90.

A duplicated falling channel suggests a higher target of $109.33.

Even though not all doubts have been cleared on the continuation of a long-term uptrend, the short-term focus is unarguably on the following gains towards $104.90-$109.33 range.