US oil may test support zone of $83.88-$84.13

U.S. oil contract CLc1 may test a support zone of $83.88 to $84.13 per barrel; a break below may trigger a fall into the range of $81.61 to $82.60.

The contract has broken a rising trendline and completed a pullback. The break suggests a reversal of the uptrend from $74.26.

The current correction seems to have been closely observing two series of retracements, respectively, on the downtrend from $93.50 to $74.26 and the uptrend from $80.09 to $89.01.

A break above $86.15 may lead to a gain into the $87.46 to $88.13 range.

On the daily chart, the market failed to break a resistance at $87.53. The failure seems to have triggered a correction that might be roughly symmetrical to the rise from the July 28 low of $77.78.

Based on this assumption, the contract may retrace toward $80.55.