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Crude oil futures traded on the Multi Commodity Exchange (MCX) failed to breach the psychological hurdle at ₹3,000/barrel last week. The contract recorded a high of ₹3,048 on January 22 and reversed from there.
It is currently trading near ₹2,772. Immediate resistance is at ₹2,820 and then at ₹3,032 – the 21-day moving averagefor the contract. The overall downtrend remains intact. A fall to ₹2,600 looks likely.
A further break below ₹2,600 can drag the futures lower to ₹2,400. Traders with a short-term perspective can go short at current levels. Stop-loss can be placed at ₹2,920 for the target of ₹2,600.
The outlook will turn positive only if the contract records a strong break and close above the 21-day moving average at ₹3,032. However, such a break looks unlikely at this juncture.
MCX natural Gas: The MCX natural gas futures contract is stuck in a sideways range between ₹170 and ₹188 per barrel over the last one week.
Currently, the contract is poised near the mid-point of this range at ₹177. The immediate outlook is not very clear. Short-term traders can stay on the sidelines for now.
A breakout on either side of ₹170-188 will decide the next leg of move for the contract. A fall below ₹170 can drag the contract lower to ₹155. On the other hand, a break above ₹188 can take it higher to ₹205
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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