Crude oil futures traded on the Multi Commodity Exchange (MCX) are range-bound between ₹3,000 and ₹3,350 per barrel. Within this range, the contract recorded a high of ₹3,320 on Tuesday and is reversing lower from there. Currently it is poised near ₹3,120. A series of important supports at ₹3,065 – the 21-day moving average and then at ₹3,045 and ₹3,000 – could arrest the pace of the fall and limit the downside to ₹3,000. So, an immediate break below ₹3,000 looks unlikely. Having said this, an upward reversal in the coming days can take the contract higher to ₹3,350 once again.

Traders with a short-term perspective can go long with a stop-loss at ₹2,980 and for the target of ₹3,300.

A strong break above ₹3,350 will strengthen the bullish momentum and take the contract higher to ₹3,500. On the other hand, the short-term outlook will turn bearish only on a strong break below ₹3,000. The ensuing target on such a break will be ₹2,750.

MCX natural gas: The outlook for the MCX natural gas futures contract is bullish. The contract inched up higher but with a slower pace in the past week. Currently, it trades near ₹178 per mmBtu. Immediate resistance is at ₹180. A strong break above this level can take the contract higher to ₹185. It will also increase the possibility of revisiting ₹200 levels.

Traders with a short-term view can go long at current levels with a stop-loss at ₹172 for the target of ₹185. Support for the contract is in the ₹172-170 zone. Only a break below ₹170 will turn the outlook negative and drag the contract lower to ₹165 and ₹160 levels.

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

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