SINGAPORE: Brent oil may test a resistance zone of $122.25-$122.42 per barrel, a break above which could lead to a gain to $123.91.
The zone triggered a correction, which is classified as a pullback towards an inverted head-and-shoulders.
The pullback is expected to end above a support at $118.87.
The pattern suggests a target of $123.91, which is yet to be reached.
The high of $128.28 is likely to be revisited once oil climbs to $123.91.
A break below $118.87 may cause a fall to $117.35. On the daily chart, oil looks steady above a rising trendline. The intact trendline suggests a healthy uptrend which is expected to extend towards $129.17.
Brent oil may test resistance at $118.87
A common gap forming between May 31 and June 1 has been almost covered.
It indicates a steady uptrend as well. A break below $118.03 could cause a fall to $113.05.
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