Commodity Analysis

MCX-Crude Oil (₹3,500)

GURUMURTHY K | Updated on January 16, 2018 Published on December 04, 2016

PO05_MCX_Crude

OPEC deciding to cut output saw the MCX-Crude oil contract surging over 9 per cent in the past week. A key trendline resistance is at ₹3,550 per barrel which was tested in the past week. The contract will need to break above this hurdle decisively to extend the current rally. Such a break will boost the bullish momentum. The broader view remains bullish with strong support in the ₹3,000-2,900 zone. This leaves the possibility high for it to break above ₹3,550 in the coming weeks. Such a break will pave the way for a fresh rally to ₹3,900 and ₹4,000. But inability to break above ₹3,550 may trigger a short-term reversal. A pull-back from ₹3,550 will increase the likelihood of the contract falling to ₹3,350 initially. Further break below ₹3,350 can drag it to ₹3,100 or even ₹3,000. The outlook for the contract will turn negative only if it declines below ₹2,900 decisively. The next target will be ₹2,700. But the possibility of a fall below ₹2,900 is low at this juncture.

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Published on December 04, 2016
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