Technicals-US oil may test support at $79.93

SINGAPORE, Aug 26 (Reuters) - U.S. oil CLc1 may test a support at $79.93 per barrel, a break below which may trigger a fall to $77.79.

A retracement analysis on the uptrend from $74.33 reveals a key support at $79.93, which is strengthened by a similar one at $80.09, the bottom of a wave b.

Under normal circumstances, the market may stabilise around this 61.8% retracement and bounce. However, given the strong bearish momentum, it is doubtful that this support would hold.

A break above $81.66 may lead to a gain to $83.39. On the daily chart, a rising trendline points at a target of $78.17. The fall from $89 looks so deep that it suggests a continuation of the downtrend from $93.50.

The continuation will be confirmed when the market breaks $78.17.