SINGAPORE: US oil may stabilize around a support at $107.74 per barrel and retest a resistance at $110.39.
The support is identified as the 100% projection level of a wave c from $118.87.
This wave demonstrates a strong momentum.
It may extend into $100.80-$103.45 range.
US oil to test support at $114.41
However, this wave may complete around $107.74 as well. Regardless of the ending point.
A bounce has been triggered by the support at $107.74.
It may consists of three waves. So far, only one wave has unfolded.
A break above $110.39 may lead to a gain into $112.03-$113.35 range.
On the daily chart, the correction from $130.50 may have extended, as confirmed by the deep fall on June 17.
Driven by a wave (C), oil could fall to $92.93.