The bullish outlook remains intact for crude oil futures traded on the Multi Commodity Exchange (MCX). The 3.6 per cent rally on Wednesday has helped the contract to break above its ₹3,500-₹3,700 sideways range which has been in place for over a week. It is currently trading near ₹3,770. Supports are at ₹3,700 and ₹3,650 that can limit the downside. Declines to these levels can attract fresh buying interest in the market. The contract can move up to test the next resistance at ₹3,845 in the coming days. A strong break above this level can take it to the next targets of ₹3,950 and ₹4,000 there after.

Traders can go long with a stop-loss at ₹3,630 for the target of ₹3,950. Dips to ₹3,700 and ₹3,650 if seen can be used to accumulate longs. The contract will come under pressure if it breaks below ₹3,650. The ensuing targets on such a break will be ₹3,610 and ₹3,580.

MCX natural gas MCX natural gas futures are range-bound between ₹155 and ₹170 for the fourth consecutive week.

It is currently trading near ₹165 and is heading towards the upper end of this range. Whether the contract is breaking above ₹170 or not will decide the next trend. A reversal from ₹170 will keep the sideways range intact and drag the contract lower to ₹160 and ₹155 in the coming days. On the other hand, a strong break above ₹170 will be bullish. It can then take the contract further higher to ₹180 there after.

Traders can stay out of the contract at the moment and wait for a breakout to get clear trade signals.

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

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