The corrective rally in the crude oil futures contract traded on the Multi Commodity Exchange from the low of ₹2,826 per barrel seem to have paused. The contract is not gaining momentum to breach the psychological resistance at ₹3,000 decisively. It is just hovering below this level over the last couple of days and currently trading near ₹2,978. The overall trend is down. But the price action on the chart suggests that the corrective rally can extend further. A strong break above the resistance at ₹3,000 can take the contract higher to ₹3,130 and ₹3,245 in the coming days.

Traders with a short-term perspective and high risk appetite can go long in this contract. Stop-loss can be placed at ₹2,835 for the target of ₹3,175. This short-term bullish outlook will get negated if the contract fails to break above ₹3,000 and reverses lower from here. In such a scenario, a fall to ₹2,800 or even ₹2,600 is possible.

MCX-Natural gas: The MCX-natural gas futures contract has been range bound between ₹173 and ₹208 per mmBtu for almost a month. It is currently poised at the mid-point of this range and the immediate outlook is not clear. So traders can avoid trading in this contract at the moment.

A breakout on either side of this ₹173-208 range will decide the next leg of move for the contract. A strong break above ₹208 will take the contract higher to ₹218 and ₹230. On the other hand, the targets on a decline below ₹173 are ₹168 and ₹147.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

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