SINGAPORE: US oil is expected to test a support of $92.75 per barrel, a break below which could trigger a drop to $88.89.
The bounce from the July 6 low of $95.10 has been totally reversed.
Obviously the downtrend has resumed. Driven by a wave C, the trend may extend to $91.90 or far below this level, to $83.44.
Another projection analysis on the fall from $105.24 marks more accurate targets.
US oil to fall into $98.33-$99.72 range
The immediate target is $92.75, while the second one is $88.89.
Resistance is at $95.14, a break above which may lead to a gain into $97.07-$98.99 range. On the daily chart, there are different wave counts and calculation of the targets.
However, both the readings on the hourly and daily chart point far south.
The current wave (C) could drive the price down to $86.11.
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