SINGAPORE: Brent oil may revisit its Monday high of $139.13 per barrel, as it could have resumed its uptrend.
The resumption was suggested by the strong recovery of the price from the Monday low of $119.04. Strategically, the target of $139.13 will be confirmed when oil breaks above the nearest resistance at $131.93.
The resumption may turn out to be fake if oil breaks the support zone of $123.65-$125.94, as the break could cause a drop into $116.26-$119.96 range.
Such a drop could be deep enough to signal a reversal of the uptrend.
On the daily chart, oil managed to climb above $129.61. Such a move indicates a completion of the fall triggered by the resistance at $138.29.
Given that so much of the fall from $147.50 has been reversed, oil may revisit this high shortly.
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