SINGAPORE: US oil may break a resistance at $117.89 per barrel and rise into a range of $119.30-$120.97, following the completion of a correction from $123.68.

Three waves make up the correction.

The wave b peaked at $119.56, which serves as a target.

The strong rise from the Thursday low of $112.31 indicates a continuation of the uptrend.

However, the continuation will only be confirmed when oil breaks $119.56.

US oil to test support at $114.41

Immediate support is at $116.59, a break below which may be followed by a shallow drop to $115.20.

On the daily chart, the long-shadowed hammer on Thursday is regarded as a convincing reversal signal.

With the readings on the hourly chart having turned bullish, a white candlestick may form on Friday.

The hammer and the white candle will be a reliable combination, suggesting a further rise into $121.63-$125.39 range.

Until now, the uptrend remains steady within a rising channel.

It will be violated if oil breaks $111.72.