The adjacent chart shows a sharp decline followed by a sharp pullback. The pullback retraced 78.6% of the entire fall. At that level the price formed a bearish outside bar a couple of times in the last few sessions. The daily momentum indicator that was showing a negative divergence has triggered a bearish crossover. All these observations suggest that distribution is taking place and the pullback is near its maturity. Unless the high of 5425 is crossed the oil can start tumbling down. The key levels on the downside are 5150 and 4900. 
MCX PIVOT POINT
31 August 2012
Crude oil: Distribution phase
The adjacent chart shows a sharp decline followed by a sharp pullback. The pullback retraced 78.6% of the entire fall. At that level the price formed a bearish outside bar a couple of times in the last few sessions. The daily momentum indicator that was showing a negative divergence has triggered a bearish crossover. All these observations suggest that distribution is taking place and the pullback is near its maturity. Unless the high of 5425 is crossed the oil can start tumbling down. The key levels on the downside are 5150 and 4900. 
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