SINGAPORE: US oil may test a support at $93.80 per barrel, with a good chance of breaking below this level and falling towards $90.55.
The bounce triggered by the support seems to have ended around a resistance at $98.16.
The downtrend may have resumed.
The bounce adopted a corrective mode, which suggests an incomplete downtrend from $116.64.
A triangle has been confirmed as bearish continuation pattern, suggesting a target of $90.55, the 100% projection level of a wave (c) from $108.75.
US oil may test support at $93.80
A break above $98.16 could lead to a gain into $99.65-$101.80 range. On the daily chart, a big triangle is contracting to a point, which looks like a top pattern.
The triangle will be confirmed when oil breaks $93.79.
A bearish target of $88.39 will be established accordingly.
However, before oil breaks the support at $93.79, it may stabilize around this level and bounce thereafter, as this support will be strengthened by a similar one at $93.53, the March 15 low.
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