Market is heading to the 119.17/120.56 zone.
- Last week Brent crude Oil exploded higher and looks to be on course for the 119.17 February high. This together with the 120.56, the 26th April high and the 2008-2013 resistance line should act as a solid upside barrier.
- Currently there is little technically to suggest that the market will maintain a break above here. HOWEVER recent moves do look directional and above 120.56 would introduce scope to the 128.40 2012 high. This in turn guards the 147.50 2008 high.
- Current dips lower are indicated to hold the 112.50/111.00 zone (the 38.2 and 50% retracements of the recent leg higher) and these together with the 108.47 short term uptrend maintain the immediate bid tone.