The outlook for crude oil futures traded on the Multi Commodity Exchange (MCX) is bullish. The contract has decisively breached its key resistance at ₹3,380 a barrel and surged some 8 per cent in the past week. It is currently trading near ₹3,462. The level of ₹3,380 will act as a good support for the contract. Dips to this level can attract fresh buying interest. The contract can rise to ₹3,600 and ₹3,700 in the coming days. Traders with a short-term perspective can go long. Stop-loss can be placed at ₹3,360 for the target of ₹3,600. Intermediate declines to ₹3,380 can be used to accumulate long positions.
The outlook could turn negative if the contract declines below ₹3,380. The next targets will be ₹3,250 and ₹3,150.
MCX natural gas: MCX natural gas futures found support at ₹156 per mmBtu in the past week and rebounded. They are currently trading near ₹161. Resistance is at ₹165 which is likely to be tested. Short-term traders with high risk appetite can go long with a tight stop-loss at ₹159 for the target of ₹165.
Whether the contract breaches ₹165 or not, will decide the next leg of move.
A break above ₹165 can take the contract higher to ₹170 and ₹175.
n the other hand, in ability to breach ₹165 can drag the contract lower to ₹160 and ₹156 levels once again.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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