SINGAPORE: US oil is expected to test a support at $115.86 per barrel, a break below which may open the way towards $111.76-$113.81 range.

The sharp swing of the market from the Tuesday high of $123.68 bears the characteristic of a trend reversal.

Further indication of the reversal is given by the violation of a rising trendline.

Unless oil could unexpectedly rise above $120.13, the trend from $105.13 could have reversed.

US oil to retest resistance at $122.49

A break above $120.13 could lead to a gain to $122.49. On the daily chart, oil failed a few attempts to break $121.63.

A top could be developing around this level.

The fall on Tuesday confirmed a dissipation of the bullish momentum.

There might not be one more attempt to test $121.63. Instead, oil may test the support at $116.15, with a good chance of breaking below it and falling towards $111.72.