The crude oil futures contract traded on the Multi Commodity Exchange has fallen sharply after recording a high of ₹6,065/barrel on last Friday.

The inability to sustain above the psychological level of ₹6,000 has now turned the outlook bearish for the contract. The probability is high that the contact can extend its fall to ₹5,780 in the coming days.

Traders with a short-term perspective can initiate fresh short position in this contract. Stop-loss can be kept at ₹6,040 for the target of ₹5,820. Intermediate rallies to ₹6,000 can also be considered as a good opportunity for accumulating more short positions.

A long-term trend support is present at ₹5,780.

So the chances are high for the MCX-crude oil futures contract to find base and reverse higher from this support level.

MCX-Natural gas: The natural gas futures contract traded on the MCX has reversed lower after recording a high of ₹246.8 per mmBtu on Tuesday.

This suggests that the corrective rally that was in place for over two weeks could have come to an end.

Also this could be a beginning of a fresh leg of down move within the broader down trend.

Next support for the contract is at ₹225 and a break of this level is possible in the coming sessions. Such a break can take the contract lower to ₹216.

Short-term traders can initiate fresh short position with a stop-loss at ₹248 for the target of ₹217.

The 68.2 per cent Fibonacci retracement level at ₹215.3 is a key support level for the contract.

An immediate breakthrough this support level might not be easy for the MCX-natural gas contract.

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

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