SINGAPORE: US oil may fall more into a range of $83.61 to $84.73 per barrel, as it has broken a support of $86.36.
The depth of the current fall confirmed a reversal of the uptrend from $82.09.
With oil having overcome the key barrier of $86.36, the chance of a fall to $82.09 has significantly increased.
The downside may not limited to $82.09, as the pattern from the Oct. 10 high of $93.64 looks like a double-top, which suggests a target of $70, once confirmed.
A break above $86.36, now a resistance, may lead to a gain to $87.68.
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On the daily chart, there was a false break above the falling trendline, which was responsible for the birth of a bull run illusion.
The support of $87.44 has been broken.
The break opened the way towards $79.57-$83.17 range.
Once oil drops into this range, the downtrend from $123.68 will be deemed to have resumed towards $62.89-$71.76 range.
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