The support has formed around the 76.4 percent Fibonacci projection level of a downward wave C that started at the June 19 high of $115.71. This wave is the third leg of a three-wave cycle that developed from the April 11, 2011 high of $127.02.

The next support will be at $82.87, the 86.4 percent projection level. Based on the speed of the fall, wave C seems to be accelerating and it won't be a surprise if this wave breaks $82.87 and then travels to $77.70, the 100 percent level.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. 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.