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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.
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