Commodity Calls

Go long on MCX crude oil futures if they top ₹4,540

Akhil Nallamuthu BL Research Bureau | Updated on April 12, 2021


The futures contract of crude oil on the Multi Commodity Exchange (MCX) seems to be turning positive as there is a likely shift in momentum to the upside. In fact, the major trend remains bullish and the fall in price which occurred in mid-March seems to be a minor correction.

The uptrend, that began from in November last year, took the futures from about ₹2,600 to almost a high of ₹5,000. That is, the current expiry contract marked a high of ₹4,985 in the first week of March this year. However, the trend reversed wherein the contract witnessed a moderation in price. But the downside was limited as the contract found support at around ₹4,250.

Following this, the contract started to chart a sideways trend. While the price band of ₹4,220 and ₹4,250 acted as a strong base, the price level at ₹4,540 has been acting as a roadblock preventing the bulls from re-establishing the uptrend.


However, the overall trend is bullish and the price is now above 21- day moving average.

Given the above conditions, one can wait for now and take fresh buy positions if the contract closes above ₹4,540 on daily chart. Stop-loss can be at ₹4,360. A breakout of ₹4,540 can lift the contract to ₹4,725 and ₹4,850.

Published on April 13, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.