US oil may extend gains to $94.40

SINGAPORE, July 24 (Reuters) - U.S. oil CLc1 may extend gains to $94.40 per barrel, as suggested by a projection analysis.

The market has briefly pierced above a resistance at $93.34, the 250% projection level of an uptrend from $70.80. It is likely to climb further to $94.40.

The current correction may end in the narrow support zone of $90.14-$90.96, which is indicated by a rising channel. A break below $90.14 may be followed by a drop to $87.60.

On the daily chart, the market has broken a resistance at $90.88, the 50% projection level of a downtrend from $109.54. The break opened the way toward the $95.29-$100.73 range.

Considering that a wave b peaked around $95.29, the contract may pause its rise and start a correction when reaching this level.