SINGAPORE: Brent oil may retest a resistance at $122.38 per barrel, a break above could lead to a gain to $123.64-$125.68 range.

The contract is riding on a wave c, which is expected to extend into $123.64-$125.68 range, formed by its 138.2% and 161.8% projection levels.

An inverted head-and-shoulders developing from the May 17 low of $111.09 suggests a target of $123 as well. Oil is experiencing a shallow correction which may end around a support of $120.94.

A break below $120.34 may open the way towards $119.16. On the daily chart, a wedge has been confirmed, indicating a target of $130.

Brent oil may test resistance at $120.34

A retracement analysis on the fall from $139.13 reveals a strong resistance at $123.01, the 61.8% level, which is strengthened by a similar one of $122.74, the peak of the wave B and the high on March 24.

These resistances are likely to work together and trigger a decent correction, which will be classified as a pullback towards the wedge.