Crude oil: Flowing southward
Crude oil formed a sharp pullback after a sharp decline. It crossed the 61.8% retracement mark and a falling trend line but couldn’t sustain in the higher territory. Consequently, the oil has fallen significantly in the last couple of weeks.The daily chart shows that the oil has done a minor-degree pullback after the fall and has started the next leg on the downside. The weekly momentum indicator has triggered a bearish crossover. Thus, the commodity is likely to fall towards $86-$82.3. The reversal can be placed at $94.