Brent oil may rise into $109.78-$110.51 range

Brent oil may rise into a range of $109.78-$110.51 per barrel, driven by a wave c.

The unexpected gain on Wednesday confirmed the extension of the uptrend from $94.50. The trend consists of three waves.

The current wave c has travelled above its 61.8% projection level of $106.67.

It has a better chance of extending to $109.78. In the meantime, oil has broken a resistance at $107.46, the 50% retracement of the downtrend from $120.41. The break opened the way towards $110.51.

The pattern from the July 6 low of $98.50 looks like an inverted head-and-shoulders, which has been more or less confirmed, suggesting an aggressive target of $120.41.

Support is at $106.67, a break below which could be followed by a drop into $104.75-$105.71 range.

Brent oil may revisit July 25 low of $101.64

On the daily chart, the nature of the rise from $94.50 remains unclear.

This rise could be a part of a big wave (C) from $125.19, or a continuation of a medium-term uptrend.

The main focus is on the short-term gain towards $120.41.