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The crude oil futures contract traded on the Multi Commodity Exchange (MCX) has surged 4.4 per cent in the past three trading sessions, decisively breaching the key resistance at ₹3,300 per barrel. However, encounter next resistance at ₹3,400, the contract was trading at around ₹3,392 on Thursday.
Nevertheless, after recording a 10-month high at $51.6, the WTI crude oil slipped 1.2 per cent to $50.6 per barrel on Thursday.
On the domestic front, both the medium- and short-term trends are up for the contract. It currently tests a resistance at ₹3,400. An emphatic breakthrough of this resistance can take the contract higher to ₹3,500 and then to ₹3,700 in the short- to medium term. Traders with a short-term perspective can make use of dips to initiate fresh long position with a stop-loss at ₹3,250.
Conversely, a decisive fall below the immediate support at ₹3,250 can start weakening the short-term bullish momentum and drag the contract down to ₹3,100 or ₹3,000 levels in the short-term.
Only a strong fall below the short-term trend deciding level at ₹2,800 will mar the uptrend and pull the contract down to ₹2,700.
On the global front, WTI Crude Oil faces resistances at $52. A decisive rally above this level can take it higher to $54 in the coming weeks. On the downside, an emphatic fall below the immediate key support at $48 can pull the contract down to $46 or even to $44 levels in the short-term.
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