Crude Oil Oct In Selling, Support 5560-5570s
CommodityOnline | Sep 22, 2014 06:25AM ET
Trading consistently above 5,710 levels would lead the rally towards the strong resistance at 5,780 levels, and then finally towards the major resistance at 5,840 levels.
MCX Crude oil October as seen in the weekly chart above has opened the week at 5,630 levels and prices made a high of 5,776 levels. During this week price could not able to sustain higher levels and fell sharply lower towards the low of 5,554 levels and this week prices have closed at lowest levels in 15 months and finally closed 0.74% lower at 5,611 levels. Technically, as per the candlestick pattern prices have formed “Bearish candlestick” indicating down side strength.
For the next week we expect Crude oil prices to find support in the range of 5,560 – 5,570 levels. Trading consistently below 5,560 levels would lead towards the strong support at 5,520 levels and then finally towards the major support at 5,450 levels.
Resistance is now observed in the range of 5,700 - 5,710 levels. Trading consistently above 5,710 levels would lead the rally towards the strong resistance at 5,780 levels, and then finally towards the major resistance at 5,840 levels.
MCX / NYMEX Crude Oil Trading levels for the week
Trend: Down
S1 – 5,560 / $ 90.90 R1 – 5,710 / $ 93.40
S2 – 5,520 / $ 90.20 R2 – 5,780 / $ 94.50
Weekly Recommendation: Sell MCX Crude Oil October between 5700 – 5710, SL – 5780, Target – 5560 / 5520
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