The crude oil futures contract traded on the Multi Commodity Exchange (MCX) is witnessing buying interest every time it dips below ₹5,000/barrel. The contract recorded a low of ₹4,898 on Monday and has reversed higher above the psychological ₹5,000 levels immediately.
The price action this week denotes the possibility of a near-term corrective rally. Immediate support is at ₹5,000 and while above this level, a rise to ₹5,130 is possible in the coming days.
A strong breach above ₹5,130 can see this corrective rally extending further to ₹5,200 and ₹5,275.
Traders with high risk appetite can go long at current levels with a tight stop-loss at ₹4,980 for the target of ₹5,090.
MCX-Natural gas: The MCX-natural gas futures contract has risen sharply after recording a low of ₹217.2 per mmBtu on Tuesday. The contract is now hovering below a key 50 per cent Fibonacci retracement resistance at ₹238.
A strong break above ₹238 can take the contract higher to ₹243 and even ₹250. On the other hand, a reversal from ₹238 can drag the contract lower to ₹229.
Traders can stay out of the market at the moment. Wait for a clear trade signal to emerge and take positions accordingly.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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