SINGAPORE: US oil may retest a support at $93.84 per barrel, with a good chance of breaking below this level and falling towards the July 14 low of $90.56.

The bounce triggered by the support has been deeply reversed.

The sharp drop from the Tuesday high of $99 strongly suggests a continuation of the downtrend from $104.46.

Resistance is at $97.51, a break above which may lead to a gain into $99.15-$101.18 range.

On the daily chart, the contract failed to break a resistance at $100.46.

The failure signals an intact falling channel, within which the downtrend could develop more.

US oil may rise into $99.15-$101.18 range

The bounce over the past two days simply looks like a ripple on the surface of the wave e which is unfolding towards $86.11.

Only a break above $100.46 could confirm an extension of the uptrend from the July 14 low of $90.56.