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Crude oil futures traded on the Multi Commodity Exchange (MCX) fell to a low of ₹3,625/barrel on May 28 and then reversed higher to record a high of ₹3,935 on Tuesday. But the contract failed to sustain and has reversed lower again from this high. Currently, it is trading near ₹3,825. Broadly, the contract could remain range-bound between ₹3,600 and ₹4,000 in the short term.
A breakout on either side of this range will decide the next leg of move for the contract. Since the contract is moving lower after testing the upper end of the range, the possibility of declining to ₹3,625 – the lower end of the range looks high. Short-term traders with high risk appetite can go short.
Stop-loss can be kept at ₹3,955 for the target of ₹3,650.
MCX natural gas: The contract has been stuck in a narrow range between ₹167 and ₹175 per mmBtu in the past week.
The range break out will decide the next trend for the contract.
Traders can stay out of the market until a clear trade signal emerges and then take trade positions accordingly.
Initiate fresh long position at ₹176 if the contract breaks above ₹175. Keep the stop-loss at ₹174 for the target of ₹180.
On the other hand, if the contract declines below ₹167, go short at ₹165. Stop-loss can be kept at ₹168 for the target of ₹161.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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