SINGAPORE: US oil may retest a resistance at $129.72 per barrel, a break above could lead to a gain into the range of $132.93 to $135.62.
The correction triggered by this resistance has been almost reversed. The reversal signals a continuation of the uptrend. A triangle seems to be developing, which looks like a bullish continuation pattern.
Confirmation of this pattern will be when oil breaks $129.72.
It will then suggest a target of $140. Immediate support is at $124.22, a break below could cause a fall into 115.52-$119.87 range.
On the daily chart, oil is poised to break the resistance at $128.61 and rise towards the 2008 high of $147.27. This resistance had little impact on the uptrend, which still enjoys a strong bullish momentum.
A break below the support at $121.77 may cause a shallow fall to $114.89.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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