SINGAPORE: US oil may fall into a range of $86.67 to $88.67 per barrel, as it has broken a support at $91.90.
The support is identified as the 100% projection level of a downtrend from $114.05.
Following its failure to overcome this barrier on July 14, oil finally made it. The break confirmed the extension of the downtrend towards $78.21-$83.44 range.
A confirmed wedge suggests a target of $83.44.
US oil still targets July 14 low of $90.56
This wedge is a part of a more bearish pennant, which indicates a lower target of $78.21.
A break above $91.90 may lead to a gain to $94.91.
On the daily chart, the downtrend keeps developing within a falling channel.
It is riding on a wave C, which is capable of travelling into a zone of $62.89 to $71.76.