SINGAPORE: Brent oil may test a resistance at $120.34 per barrel, a break above could lead to a gain to $121.60-$122.38 range.
The contract is riding on a wave c, which may complete around $120.34 or extend into $123.64-$125.68 range, formed by its 138.2% and 161.8% projection level.
An inverted head-and-shoulders developing from the May 17 low of $111.09 has been confirmed, and they suggest an extension of this wave towards $123.
Support is at $119.16, a break below could cause fall to $118.30.
On the daily chart, a wedge has been confirmed, indicating a target of $130.
A retracement analysis on the fall from $139.13 reveals a break above a strong resistance at $118.03.
The break opened the way towards a resistance at $123.01.