Crude oil had crossed the medium-term falling trend line in July this year; however, it couldn’t build upon the gains. The oil traded above it for a few months. Structurally, it formed a distribution triangle there and broke down in September 2013. It also broke a mediumterm rising channel in September. The daily and weekly momentum indicators are in bearish mode. The fall is breaking up into waves of lower degrees and is unfolding in a channelised manner. The oil has broken the key support of $95.75, ie the 61.8% retracement mark. The subsequent targets are $91.30 and $90. The reversal can be trailed to $97.70 on a closing basis.
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