SINGAPORE: Brent oil may break a support at $103.09 per barrel and fall into a range of $96.93 to $99.88.

Even though the preceding rise from $96.93 adopted a five-wave mode, which suggests a possible extension of the rise above $123.01, the current drop looks like a continuation of the downtrend from $139.13.

A stop of the fall above $96.93 will be a key to the future extension of the uptrend.

A failure of the price to maintain above $96.93 will wipe out this opportunity.

Oil prices dive as US considers record reserves release

A break above $106.89 may lead to a gain to $113.05. On the daily chart, chart pattern is clear that the drop is driven by a wave C which is capable of travelling to $97.26.

It is a bit early to presume that oil would break the support at $97.26 and fall towards $81.74, as the ABC correction may be shaped into a triangle as well.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.