SINGAPORE: Brent oil may rise into a range of $109.70-$$111.65 per barrel, driven by a powerful wave 3.

The strong rise on Tuesday confirmed an extension of a wave (5), which consists of five smaller waves.

The wave 3 is the fiercest. It is capable of travelling into $111.65-$113.28 range, as suggested by a bullish triangle.

This pattern, along with the preceding rise from $90.12, makes a more bullish pennant, indicating a higher target of $120.

A drop from the current level will be regarded as a pullback towards the triangle. The pullback may be limited to $104.22-$105.37 range.

On the daily chart, oil seems to be riding on an extended wave (5), which is capable of travelling to $128.40, as it has developed far above a resistance at $101.87.

A realistic target could be $113.11 or $115.72.

The whole downtrend from $128.40 has been so deeply reversed that it is only a matter of time when this high is revisited.

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