Brent crude futures contract traded on the Intercontinental Exchange (ICE) is in a strong downtrend. The contract recorded a high of $115.71 per barrel in June last year and has tumbled 58 per cent from there.
A low of $45.19 was recorded in early January and the contract has risen slightly from there to $48.8 now.
The overall downtrend remains intact. Key resistances are at $53.5, $62 and $66. Key supports are seen at $42, $40 and at $34.
The current downtrend can extend further to $42 and $40 in the coming months. But whether the slump in prices can exceed beyond $40 to $34 is not very clear at the moment. A reversal from here will have the potential to take crude oil prices higher to $60 and $65 in the long term.
However, this reversal rally might be slow rather than a sharp and fast recovery.
On the domestic front, the crude futures traded on the Multi Commodity Exchange which moves in tandem with the NYMEX Crude oil price is also in a strong downtrend. It is currently at ₹2,837 per barrel. Key resistances are at ₹3,100 and ₹3,800.
A fall to ₹2,400 looks likely now. Inability to reverse higher from ₹2,400 will increase the danger of the fall extending towards ₹2,000 or even ₹1,800.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.