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The crude oil futures contract traded on the Multi Commodity Exchange (MCX) has dropped sharply by over 5 per cent in the past two weeks.
The outlook continues to remain bearish for the contract. It has broken its 100-week moving average support at ₹5,758 per barrel this week which adds more downside pressure.
The contract can fall to ₹5,500 in the coming days which is the next support level.
Traders with a short-term perspective can go short with a stop-loss at ₹5,785 for the target of ₹5,530. A break below ₹5,500 will increase the downside pressure and drag the contract lower to ₹5,200. On the other hand, a reversal from ₹5,500 could trigger a corrective rally to ₹5,800.
MCX-Natural gas: The MCX-natural gas futures contract has been oscillating around its 21-day moving average at ₹235 per mmBtu this week.
This leaves the immediate outlook to be unclear.
Support for the contract is at ₹230 and resistance is at ₹238.
A breakout on either side of these levels would decide the next move for the contract.
A break above ₹238 can take the contract higher to ₹247.
In this case, traders can go long at ₹239 with a stop-loss at ₹236 for the target of ₹243.
On the other hand, if the contract declines below ₹230, it can fall to ₹225.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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