US oil to fall to $90.39

SINGAPORE: US oil would drop to $90.39 per barrel, as a rebound from the Sept. 26 low of $88.95 has completed.

A downtrend starting from the Sept. 14 high of $100.42 has resumed, as oil failed to break resistance at $92.71, provided by the trendline descending from $100.42.

Based on a Fibonacci retracement analysis on the rise from $88.95 to $92.71, oil is expected to return to $90.39, the 61.8 percent level, a break below which will open the way towards $88.95.

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