SINGAPORE: US oil looks neutral in a range of $84.95-$87 per barrel, and an escape could suggest a direction.

Even though the downtrend from $93.64 remains steady and may resume over the next few days, the exact timing of its continuation remains unclear.

It is also not very certain if oil bounces towards $87 first before dropping.

A fall below $84.74 could confirm the continuation of the downtrend and a target zone of $82.89-$83.56.

A break above $87, which looks unlikely, may lead to a gain into $88.55-$89.16 range.

On the daily chart, following its failure to break the resistance at $92.80, oil dropped for three consecutive days.

US oil may retest support at $85.69

There are more black candlesticks than white ones since the drop started.

Such a formation clearly sends a bearish signal that the downtrend would extend further.

The support at $85.59 only triggered a very weak bounce.

It looks vulnerable and may be broken soon.