Resistance has been formed around the 61.8 percent Fibonacci projection level of an upward wave C that rose from the May 6 low of $106.97.
It is strengthened by another one at $110.40, exerted by a trendline descending from the Aug. 28, 2013 high.
These two resistances have made an extension of the wave C less possible. Chances are, oil may retrace to $109.41, the 38.2 percent projection level.
A break above $110.99 could trigger a further gain to $111.97, the 76.4 percent level.
The views expressed are his own.
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