SINGAPORE: US oil is expected to retest a resistance at $122.49 per barrel, a break above which may lead to a gain to $125.02.
The strong surge on Monday confirmed the completion of a correction from the June 8 high of $123.18.
The surge occurred around a rising trendline support of $118.39.
The intact trendline suggests a steady uptrend which is poised to extend towards $125.02. Immediate support is at $120.13, a break below which may trigger a drop towards $118.39.
The trendline is likely to be broken, once oil falls to $118.39 again.
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On the daily chart, the candlesticks over the past three trading sessions may have formed a rising three methods, which suggests a continuation of the uptrend towards $125.39.
A break below $116.15 could confirm a reversal of the uptrend.
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