SINGAPORE: Brent oil may test a resistance at $118.87 per barrel, a break above could lead to a gain to $120.38.
The contract has pierced above a lower resistance at $117.35. It is pulling back towards this level.
Upon the completion of the pullback, it may resume its rise towards $118.87. A break below $117.35 may open the way towards $115.48.
The pattern from the Wednesday low of $115.40 will be classified as an inverted head-and-shoulders, if oil falls to $115.48. On the daily chart, oil looks steady above a rising trendline.
Brent oil may edge up to $117.78
The uptrend remains intact. A common gap forming between May 31 and June 1 may be covered soon.
Only a break below $113.05 could confirm a reversal of the uptrend.
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