Crude Oil High At 6,480 To A Low Of Rs 5,980 Levels
CommodityOnline | Jul 22, 2014 07:20AM ET
As one can see from the adjacent chart, MCX crude oil seems to be overbought on the hourly chart. From a high of Rs6,480 to a low of Rs5,980 the commodity has retraced 50% and the next important Fibonacci retrenchment level of 61.80% comes at Rs6,290.
A negative diversion on the Relative Strength Index and various oscillators such as Stochastic point to bearishnessin the counter. The other technical observations are the Relative Strength Index is valued at 70 and Stochastic is valued at 87. This indicates crude is in an overbought zone. On any rise till Rs6,290 one can sell for a downside target of Rs6,190-6,130 levels. Trade above Rs6,350 will negate the bearish view.
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