SINGAPORE: US oil is expected to test a resistance at $123.65 per barrel, a break above which could lead to a gain into a range of $124.95-$125.84.

A bullish flag suggests a target of $129, which is still distant.

Below this level are various realistic targets that are revealed by two projection analyses on uptrend from $105.13 and $109.23, respectively.

Oil has pierced above the resistance at $122.49, it is expected to test the next resistance at $123.65.

Immediate support is at $121.54, a break below which could cause a fall to $120.24. On the daily chart, oil has broken a resistance at $121.63. The break opens the way towards $130.50.

US oil to rise into $121.54-$123.65 range

Before revisiting this high, the contract needs to overcome a barrier at $125.39.

With the downtrend from $130.50 having been so much reversed, it is almost certain that the uptrend from $64.43 has resumed.

However, not all doubts have been cleared.

One of them is about the corrective wave structure of the rise from $92.93.

The structure suggests a possible completion of the uptrend around $130.50.