SINGAPORE: US oil may rise into a range of $69.96-$71.28 per barrel, as it has broken a resistance at $68.99.

The contract is riding on a wave C from $61.56, which is capable of travelling to $71.28. The structure of this wave suggests a more aggressive target zone of $74.99-$77.29.

A total of five small waves will make up the wave C. The third wave, labelled (3), is the fiercest. It could easily travel to $71.28.

A break below $68.99, now a support, may cause a fall limited to $67.57.

On the daily chart, oil has broken a triangle which suggests a target around $75.

This pattern forms a more bullish pennant, together with the rise from $33.64. The pennant indicates a higher target of $91, which may be fulfilled by end of this year.

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