SINGAPORE: Brent oil may drop into a range of $117.01-$118.43 per barrel, as suggested by a double-top.
The pattern has been confirmed, indicating a target of $118.43. It has a more bearish indication that the uptrend from $112.45 may have reversed.
The bounce triggered by the support at $119.84 is classified as a pullback towards the double-top.
With this pullback having been reversed, the drop towards $118.43 has resumed.
A break above $121.58, which looks very unlikely, may lead to a gain into $122.66-$124.40 range.
On the daily chart, oil failed to break a key resistance at $123.01 again.
The failure has triggered a drop towards the rising trendline, which establishes a support around $118.03. Oil failed twice to break $123.01.
The two failures suggest the formation of a bigger double-top.
This pattern will be confirmed when oil breaks $113.05. Indeed, a break below $118.03 would be the very early confirmation.