SINGAPORE: Signals are mixed for US oil, and a further development of the chart will suggest a direction.

The contract seems to be consolidating within a small triangle.

Until it rises above $104.45 or breaks below $97.50, the nature of this pattern will remain unknown.

The consolidation within this triangle has been controlled by a set of projection levels on a wave (c) from $108.75.

Brent oil may gain more to $113.05

Unfortunately, it is not very clear if this wave has completed around its 61.8% projection level of $97.50.

The current speculation is this wave (c) may consist of five smaller waves.

The current wave c could travel to $98.16, to be then partially reversed by a wave d.

The sideways move may last a few days. On the daily chart, the consolidation is confined within a bigger triangle, which suggests a fall towards $93.79.

However, this target won't become valid until oil breaks $98.16.