Crude Oil In Downtrend, Support 6050 – 6000s
CommodityOnline | Apr 28, 2014 05:08AM ET
MCX Crude oil May as seen in the weekly chart above has opened the week at 6,260 levels and during this week price made a high of 6,322 levels. Prices could not able to breach the resistance levels of 6,350 levels and corrected from higher levels towards the weekly low of 6,125 levels. During this week prices has breached the previous week’s low of 6,201 levels and trading below it. In this week prices finally closed 2.17% lower on 6,131 levels.
For the next week we expect Crude oil prices to find support in the range of 6,050 – 6,000 levels. Trading consistently below 6,000 levels would lead towards the strong support at 5,920 levels and then finally towards the major support at 5,800 levels.
Resistance is now observed in the range of 6,300-6,350 levels. Trading consistently above 6,350 levels would lead the rally towards the strong resistance at 6,550 levels, and then finally towards the major resistance at 6,700 levels.
MCX / NYMEX Crude Oil Trading levels for the week
Trend: Down
S1 – 6,000 / $ 98.50 R1 – 6,350 / $ 104.30
S2 – 5,920 / $ 97.00 R2 – 6,550/ $ 107.60
Weekly Recommendation: Sell MCX Crude Oil May between 6,200 – 6,250, SL - 6,350, Target – 6,050 / 6,000.
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