Comments
The rally in futures of crude oil, that began in November last year, does not seem to have lost strength as the momentum continues to be strong. Even a small price correction seems to be bought into. The March futures contract of crude on the Multi Commodity Exchange (MCX), which saw a minor correction towards the end of the last week, seems to have realigned with the uptrend since the price has been moving up since opening if the current week. Notably, the futures marked a fresh 52-week high of ₹4,566 on Tuesday.
Supporting the bullish view, the daily relative strength index is showing a fresh uptick and the moving average convergence divergence indicator on the daily chart stays in the positive territory. Moreover, the global price trend is substantiating the same as the spot price of Brent crude has surpassed the resistance of $65.
However, the price band of ₹4,600 and ₹4,670 can be a hurdle. Hence, fresh longs can be initiated above ₹4,670. Until then, traders can stay on the fence and those already holding longs exiting at current levels and re-enter above ₹4,670.
Comments
COMMENT NOW
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.