SINGAPORE: Brent oil is expected to retest a support at $118.82 per barrel, a break below which could open the way towards $115.46-$117.32 range.

The Tuesday low of $118.91 is lower than the low of $118.93 touched on Monday.

This subtle difference suggests either the development of an expanding wedge or a reversal of a the uptrend from $112.45.

The key to the following direction would be a break below $118.82 or above $122.18.

Brent oil may drop into $117.01-$118.43 range

The sharp swing of the price from the Tuesday high of $125.19 once again suggests a reversal of the uptrend from $112.45.

Oil is expected to end its bounce below $122.18 and retest the support at $118.82 thereafter.

A break above $122.18 may lead to a gain into $133.33-$125.19 range.

On the daily chart, oil is sandwiched between a rising trendline and a resistance at $123.01.

Trending signals remain neutral.

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.