SINGAPORE: US oil is expected to drop into a range of $93.99-$96.10 per barrel, as it has broken a support at $99.53.
The bounce from $90.56 seems to have ended with the formation of a small double-top around a resistance at $105.08.
The retracement analysis on the fall from $114.05 reveals its close relation to the bounce.
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The relation clearly signals a steady downtrend from the June 14 high of $123.68, as the bounce proved to be against the shorter downtrend from the June 29 high of $114.05.
A break above $99.53 may lead to a gain limited to $102.31.
On the daily chart, oil failed to break a resistance at $104.90.
The failure confirmed an intact channel, within which the downtrend may develop further.
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