SINGAPORE: US oil may revisit its Aug. 16 low of $85.73 per barrel, as more than 76.4% of the rise from this level has been reversed.
This rise is classified as a part of an irregular flat developing from the Aug. 5 low of 97.01. Five small waves make up the rise.
The second wave labelled ii ended at $86.60, which serves as a target above $85.73.
The drop from $97.66 looks like a continuation of the downtrend from $104.39.
Resistance is at $90.01, a break above which may lead to a gain into $91.05-$91.69 range.
US oil may retest support at $90.70
On the daily chart, two black candles on Tuesday and Wednesday suggest a further fall on Thursday.
The downtrend from $104.46 may have been driven by a wave C, which consists of three smaller waves.
The third small wave, the wave c is unfolding towards a range of $73.93-$85.59.
Given that the support at $85.59 triggered a decent bounce, a much weaker bounce may occur when oil falls to this level again.
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