The Crude Oil futures contract traded on the Multi Commodity Exchange (MCX) jumped 3 per cent decisively breaking through the key immediate resistance at ₹3,000 a barrel and closed at ₹3,046 on Wednesday.

Extending this bullish momentum, the contract climbed another ₹48 or ₹1.6 per cent and was trading at 3094 on Thursday. Significant support at ₹2,900, which had arrested the contract’s decline early September, once again halted the contract’s decline last week. This support level also coincides with the 61.8 Fibonacci retracement level of the prior up move.

Taking support at ₹2,900, the crude oil contract appears to have resumed its medium-term uptrend that began in early August low at ₹2,631. The contract trades well above its 21- and 50-day moving averages. However, the contract faces a key resistance ahead at ₹3,150. Strong break-out of this resistance is needed to reinforce the bullish momentum and push the contract higher to ₹3,250 and ₹3,300 band in the short term.

Traders with a short-term perspective can consider buying the contract with a stop-loss at ₹2,980. Traders can also consider accumulating long positions on a strong rally beyond ₹3,150 with a trailing stop-loss.

On the other hand, the contract has key supports at ₹3,000 and ₹2,900. A conclusive plunge below ₹2,900 will mitigate the contract’s medium-term uptrend and drag the contract down to ₹2,800 and then to ₹2,650 in the short-term.

On the global front, the WTI crude oil price surged 2.3 per cent to $46.4. Key resistances are at $48 and $50 levels. Significant supports are at $44 and $43.

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