SINGAPORE: US oil faces a resistance at $118.14 per barrel, a break above could lead to a gain to $119.44-$120.24 range.
The contract is riding on a wave c from $109.23, which may either end around $118.14 or extend to $123.65.
This wave is a part of a bigger wave (c) from $105.13, which is expected to travel to $122.49.
Based on this readings, the wave c may extend to $123.65. However, it is not very clear if a decent correction would occur around $118.14.
A rising trendline establishes a resistance around $118 as well.
Chances are high that the rise would pause around this level or be disrupted by a correction.
Support is at $116.93, a break below may open the way towards $114.74-$116.04 range.
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On the daily chart, oil has broken a key resistance at $116.15.
The way towards $130.50 has been opened. Before rising towards $130.50, oil may pull back towards $116.15 first.