Commodity Calls

Go short on crude oil futures

Akhil Nallamuthu BL Research Bureau | Updated on August 04, 2021

In November 2020, the continuous contract of crude oil on the Multi Commodity Exchange (MCX) bounced after finding support at ₹2,540. Since then, the contract has been on a strong uptrend. While there was a bit of a slowdown in March this year after reaching ₹4,960 levels, the contract regained momentum and crossed over the critical level of ₹5,000 in June.

It made a fresh high of ₹5,733 during the first week of July. However, the futures started to lose momentum and slipped below ₹5,000-mark. Nevertheless, the futures again tried to move up. But after reaching ₹5,500 levels, the contract quickly made a U-turn, and is now below both 21- and 50-day moving averages, a bearish signal.

Traders can short crude oil futures with stop-loss at ₹5,330 for a potential target of ₹4,885.

 

Published on August 04, 2021

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

This article is closed for comments.
Please Email the Editor

You May Also Like