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Trend continues to be bullish for crude oil and the futures price is likely to move north further.
The rally in futures on the Multi Commodity Exchange (MCX) contract began in November last year. Looking at the price action of March contract, the uptrend continues to exhibit good bullish momentum.
Last week, March contract rebounded from the support of ₹4,380, where the 21-day moving average coincidedand rallied past the previous high of ₹4,674. It then registered a fresh high of ₹4,967 on Monday and has slightly moderated. Nevertheless, the bulls are clearly in control.
So, the near-term trend will be bullish as long as the price stays above the important support of ₹4,500.
The trend in international prices, too, show that the price of crude oil can post more gains in the upcoming sessions. For instance, the Brent crude spot price at nearly $70, continues to make highs and there are no hints of a slowdown.
Traders can buy MCX-crude oil futures on declines with stop-loss at ₹4,630. The price is likely to touch ₹5,000.
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