The rally in crude oil contract traded on the Multi Commodity Exchange (MCX) has paused for a while. The contract has been hovering around ₹3,500/barrel in the past week and is currently poised at ₹3,564. The overall outlook is bullish. A key short-term trend line support is at ₹3,435. It can limit the downside for the contract. A resistance is at ₹3,650. A strong break above this hurdle can take the contract higher to ₹3,830.

Short-term traders can go long. A stop-loss can be placed at ₹3,415 for the target of ₹3,780. Any dips to test the support at ₹3,435 can be used to accumulate long positions.

The downside pressure on the contract will increase only if it breaks below ₹3,435. The next target will be ₹3,250.

MCX natural gas: The immediate outlook for MCX natural gas futures is not clear. The contract has been range-bound between ₹160 and ₹165 per mmBtu this week. Short-term traders can stay out of the contract until a clear trade signal emerges.

A breakout on either side of this range will decide the next leg of move for the contract. A strong break above ₹165 can take it to the next key resistance at ₹168. Further break above ₹168 can see a rally to ₹176. On the other hand, a break below ₹160 will be bearish and the contract can fall to ₹156 and ₹150.

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

Related Topics
comment COMMENT NOW