SINGAPORE: Brent oil may fall to $92.97 per barrel, as it has resumed its downtrend.

The resumption was confirmed by the Wednesday low of $96.93 which is below the Tuesday low of $97.44.

A retracement analysis on the uptrend from $65.72 to $139.13 indicates a target of $93.76 while a pennant from $133.15 suggests a lower target around $88.

The support at $97.71 triggered the second bounce, which is supposed to be weaker than the first one on Wednesday.

Only a break above $103.02 could signal a reversal of the downtrend.

On the daily chart, oil is testing a support at $97.26, the 61.8% retracement of the fall from the 2008 high of $147.50 to $15.98.

Both the former supports at $129.61 and $116.46 failed to work properly.

These failures raise some doubt on the current support.

One possibility could be a brief drop below this support followed by a sudden rise.

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