SINGAPORE: US oil still targets its July 14 low of $90.56 per barrel, as suggested by its wave pattern and a retracement analysis.

The contract is riding on a wave (C) that could travel into $78.21-$83.44 range.

The consolidation above $91.90 has been shaped into a wedge, which has been more or less confirmed as a bearish continuation pattern, suggesting a target of $83.24.

This wedge is a part of a more bearish pennant, which indicates a lower target of $78.21.

The moderate bounce on Tuesday is regarded as a pullback towards the wedge.

US oil may retest resistance at $99.15

Resistance is at $95.87, a break above which may lead to a gain into $97.51-$99.15 range.

On the daily chart, the downtrend remains firm within a falling channel.

It is riding on a wave C, the third wave of a bigger wave (C) from $123.68.

This wave is capable of travelling into a zone of $62.89-$71.76.

A realistic target will be $86.11, which will be valid when oil breaks $91.22.