SINGAPORE: US oil may revisit its July 14 low of $90.56 per barrel, as the bounce from this level has been deeply reversed.
A retracement analysis on the bounce reveals a support of $93.84, which serves as the last barrier towards $90.56.
The consolidation above this support seems to have ended.
The downtrend from $104.46 has resumed. Oil is retesting the support after two failed attempts.
US oil to drop into $93.99-$96.10 range
It is highly likely to succeed in overcoming this barrier.
Resistance is at $95.87, a break above which may lead to a gain into $97.51-$99.15 range.
On the daily chart, the downtrend remains steady within a falling channel.
The trend is expected to extend to $86.11.
Five waves make up the trend.
The wave e is unfolding towards this target.