SINGAPORE: US oil is expected to drop into a range of $113.81-$115.86 range, following its failures to break a resistance at $122.49 per barrel.

A double-top forming around this barrier has been confirmed, suggesting a target of $115.86. It also confirms a reversal of the uptrend from the $105.13.

The support at $118.39 triggered a weak bounce which has been totally reversed.

The reversal signals an extension of the fall towards the target zone.

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A break above $120.13 again may lead to a gain to $122.49.

On the daily chart, oil failed to break a resistance at $121.63.

The failure has triggered a correction towards $116.15.

The uptrend from the May 11 low of $98.20 will be deemed intact if oil manages to stabilize around $116.15.

A break below this level could confirm a trend reversal.