Crude Oil May Down, Selling Recommended
CommodityOnline | Nov 10, 2014 05:55AM ET
Crude oil prices to find support in the range of 4,780 – 4,760 levels. Trading consistently below 4,760 levels would lead towards the strong support at 4,690 levels and then finally towards the major support at 4,600 levels.
MCX Crude oil Nov. as seen in the weekly chart above has opened the week at 4,941 levels and on the same day it made a high of 4,989 levels. During this week as expected priced corrected sharply and made a new contract low of 4,691 levels. In the week prices closed below the previous week’s closing of 4,931 levels and finally closed 1.42% lower at 4,861 levels. Technically, as per the candlestick pattern prices have formed “Bearish candlestick pattern” indicating weakness in the prices.
For the next week we expect Crude oil prices to find support in the range of 4,780 – 4,760 levels. Trading consistently below 4,760 levels would lead towards the strong support at 4,690 levels and then finally towards the major support at 4,600 levels.
Resistance is now observed in the range of 4,950 - 4,980 levels. Trading consistently above 4,980 levels would lead the rally towards the strong resistance at 5,080 levels, and then finally towards the major resistance at 5,200 levels.
MCX / NYMEX Crude Oil Trading levels for the week
Trend: Down
S1 – 4,760 / $ 76.90 R1 – 4,980 / $ 80.50
S2 – 4,690 / $ 75.90 R2 – 5,080 / $ 82.50
Weekly Recommendation: Sell MCX Crude Oil November between 4950 – 4980, SL – 5080, Target – 4760 / 4700
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