The Crude Oil futures contract traded on the Multi Commodity Exchange is facing resistance at around ₹3,450 per barrel. The contract reached a high of ₹3,440 on Tuesday and has come off slightly from there. It is currently trading at around ₹3,350. Immediate resistances are at ₹3,400 and ₹3,450.

Support is at ₹3,270 which is likely to be tested as long as the contract trades below ₹3,400. Whether the contract falls below ₹3,270 or reverses higher from there will decide the next move.

A fall below ₹3,270 may increase the downside pressure and drag it to ₹3,200 or even ₹3,180. Short-term traders with a high risk appetite can go short on a break below ₹3,270 with a stop-loss at ₹3,310 for the target of ₹3,210.

Revise the stop-loss lower to ₹3,255 as soon as the contract moves down to ₹3,240.

On the other hand, if the contract manages to reverse higher from the support at ₹3,270, it can bounce back to ₹3,350 and ₹3,400 once again. In such a scenario, a range bound move between ₹3,270 and ₹3,450 is likely for some time.

The contract will gain fresh bullish momentum only on a strong break above ₹3,450. Such a break will pave the way for a fresh rally to ₹3,550 and ₹3,600.

On the global front, the WTI crude oil futures contact made a high of $51.6 on Monday and has reversed lower. It is currently hovering around $50 and may test the support at $49.

A break below $49 can take it lower to $48. But a reversal from $49 can keep it range bound between $49 and $52 for some time.

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

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