SINGAPORE: US oil may break a support at $109.11 per barrel, and fall towards the next support at $107.59.
The correction triggered by the resistance at $114.14 adopted a zigzag mode, consisting of three waves.
The current wave c is expected to travel to $107.59.
Even though a further fall is likely, it is not very clear if the downtrend from $115.56 has resumed.
About 86.4% of the trend was reversed. Such a reversal was unlikely to occur if the downtrend is strong enough to resume and extend below $105.13.
US oil may retest resistance at $114.14
Resistance is at $110.35, a break above which may lead to a gain into $111.58-$113.10 range.
On the daily chart, oil could be retracing towards the lower shadow of the hammer forming on May 19 to seek some support.
This hammer formed a bullish reversal signal together with the following white candle. It confirmed a continuation of the uptrend.
Based on this interpretation, oil may end its correction in the support range of $105.13-$107.65.