Commodities

MCX crude oil moves in a narrow zone

Gurumurthy K BL Research Bureau | Updated on January 24, 2018 Published on July 16, 2015

crudeoil

The crude oil futures contract has been stuck in a narrow range between ₹3,220 and ₹3,420 per barrel since July 7, within its overall downtrend. It is current trading just above the lower end of this range at ₹3,290.

A breakout on either side of this range will determine the next leg of move for the contract.

A break above ₹3,420 can take the contract higher to 3,500.

On the other hand, a break below ₹3,220 will see the contract resuming its downtrend to the next targets of ₹3,157 – the 61.8 per cent Fibonacci retracement level and ₹3,000 – the psychological support.

Traders who have taken short positions last week can continue to hold their position.

Stop-loss can be revised lower to ₹3,440 for the same target of ₹3,170.

MCX-Natural Gas: The contract has reversed sharply higher in the past week from the low of ₹168.4 per mmBtu recorded on July 9.

It is currently trading near ₹185. Immediate support is at ₹182 andthe next key support is at ₹180. As long as the contract trades above these supports, the outlook will remain bullish. A rise to ₹190-192 looks likely in the coming days.

Traders can wait for dips and go long at ₹182. Stop-loss can be placed at ₹179 for the target of ₹188.

The contract will come under pressure if it breaks below ₹180. The ensuing target on such a break will be ₹175.

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

Published on July 16, 2015
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