SINGAPORE: US oil may break a resistance at $56.74 per barrel and rise into the $57.24-$57.55 range.

The resistance is identified as the 238.2% projection level of an uptrend from $51.64. The trend is riding on a powerful wave (3)-3, which could be much longer than the wave (3)-1.

That means oil could surge above $60. Support is at $56.43, a break below which may cause a dip into $55.92-$56.23 range. On the daily chart, oil has cleared a resistance at $56.37, the 338.2% projection level of an uptrend from $37.06.

The next resistance will be at $57.72, a break above which could lead to a gain to $58.55. A pennant suggests a target of $58.30 which falls within the range of $57.72-$58.55.

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