SINGAPORE: Brent oil is poised to break a resistance at $113.33 per barrel, and rise into $114.33-$115.69 range. Oil looks persistent in testing this barrier.
After two failures, it still managed to approach this level again.
Given that more than 61.8% of the downtrend from the high of $115.69 has been reversed, oil is highly likely to revisit this high. Support is at $111.87, a break below which could cause a fall into $109.52-$110.70 range.
On the daily chart, following the formation of a piercing pattern between May 18 and May 19, a white candlestick appeared on May 20.
Brent oil may retest $107.79 after weak bounce
This is an ideal combination of reversal signals. It strongly suggests a further gain towards $118.03.
A wedge will be proved bullish, once oil rises to $118.03.
The pattern will then indicate a target range of $123.01 to $129.17.
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