SINGAPORE: Brent oil is expected to revisit its June 8 high of $124.40 per barrel, as a correction from this level could be over.
The completion of the correction has been confirmed by the sharp surge from the Monday low of $118.93.
Before rising above $124.40, oil may continue to observe a set of retracements on the rise to this level from $112.45.
Brent oil may drop into $117.01-$118.43 range
Support is at $121.58, a break below which may trigger a drop to $119.84.
A rising trendline may be violated once oil falls to $119.84.
On the daily chart, oil managed to hover above a rising trendline and a support at $118.03.
The uptrend temporarily remains steady.
The candlesticks over the past three trading sessions seem to be forming a rising three methods, which suggest a continuation of the uptrend.
A break above $123.01 will confirm the extension of the uptrend towards $129.17, while a break below $118.03 will not only cause a drop to $113.05, but also suggest a reversal of the uptrend from the April 11 low of $97.57.
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