U.S. oil may test resistance at $83.84

SINGAPORE, July 29 (Reuters) - U.S. oil CLc1 may test a resistance at $83.84 per barrel, a break above which could lead to a gain into $85.72-$87.60 range.

The market stabilized around a support at $77.29, the 61.8% retracement of the uptrend from $67.24 to $93.50. The stabilization, along with the following strong bounce, signals a completion of the fall from $93.50, or its first round.

Five waves made up the fall. The peak of the wave 4 around $85.72 serves as a target. Immediate support is at $81.52, a break below which may trigger a drop into $78.88-$80.08 range.

On the daily chart, the market found support at $79.04, which is near $77.29 (hourly chart). It is supposed to bounce toward $86.41.

After three days' consecutive drop, a bearish three black crows pattern formed, confirming a reversal of the uptrend from $67.04 and suggesting a further drop.