SINGAPORE: Brent oil may break a resistance at $118.30 per barrel, and rise to $120.34.

The contract is riding on a wave c which has just travelled above its 61.8% projection level of $117.04.

It has a better chance of extending to $120.34.

An inverted head-and-shoulders developing from the May 17 low of $111.09 has been confirmed, which suggests a target of $123.

Oil jumps to 2-month high on tight supplies

On the daily chart, a bigger wedge has been confirmed, indicating a target of $130.

The strong momentum accumulated on Thursday is likely to drive the price over a resistance at $118.03.

A decent correction may only occur when oil reaches the key resistance at $123.01, which is near the peak of a wave B.