SINGAPORE: Brent oil may retest a support at $111.87 per barrel, with a good chance of breaking below this level and falling to $110.70.

The correction triggered by the resistance at $114.33 consists of three waves.

The current wave c is expected to travel into $110.70-$111.87 range.

The pattern from the May 17 low of $111.09 looks like an inverted head-and-shoulders.

The right shoulder is developing, which may complete above $110.70.

This pattern will be confirmed when oil breaks $114.33. It will then suggest a target of $123.

Brent oil poised to rise into $114.33-$115.69 range

A break below $110.70 will not only open the way towards $108.06-$109.52 range, but also signal a continuation of the downtrend from $115.69.

On the daily chart, oil seems to have somehow lost its bullish momentum around a resistance at $113.05.

It is expected to consolidate around this barrier for one or two days.

Oil failed three times to break this resistance since April 18.

It is highly likely to succeed in its current attempt.