Crude Oil Resistance At 5210-5220s, Selling
CommodityOnline | Oct 20, 2014 06:33AM ET
Crude oil prices to find support in the range of 4,930 – 4,940 levels. Trading consistently below 4,930 levels would lead towards the strong support at 4,880 levels and then finally towards the major support at 4,800 levels.
MCX Crude oil November as seen in the weekly chart above has opened the week at 5,178 levels and prices made a high of 5,224 levels. During this week price could not sustain higher levels and fell sharply lower towards the low of 4,935 levels. This week prices have closed 3.47% lower at 5,085 levels, its lowest level in 17 months. Technically, as per the candlestick pattern prices have formed “Bearish candlestick” indicating downside move.
For the next week we expect Crude oil prices to find support in the range of 4,930 – 4,940 levels. Trading consistently below 4,930 levels would lead towards the strong support at 4,880 levels and then finally towards the major support at 4,800 levels.
Resistance is now observed in the range of 5,210 - 5,220 levels. Trading consistently above 5,220 levels would lead the rally towards the strong resistance at 5,310 levels, and then finally towards the major resistance at 5,400 levels.
MCX / NYMEX Crude Oil Trading levels for the week
Trend: Down
S1 – 4,930 / $ 79.70 R1 – 5,220 / $ 84.40
S2 – 4,880 / $ 78.90 R2 – 5,310 / $ 85.90
Weekly Recommendation: Sell MCX Crude Oil November between 5210 – 5220, SL – 5310, Target – 4930 / 4880
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