Crude Oil Resistance At 5740-5760s, Down Trend
CommodityOnline | Aug 25, 2014 05:41AM ET
Trading consistently above 5,760 levels would lead the rally towards the strong resistance at 5,860 levels, and then finally towards the major resistance at 5,950 levels.
MCX Crude oil Sept as seen in the weekly chart above has opened the week at 5,780 levels and it made a high of 5,841 levels. As expected during this week could not able to sustain on the resistance zone of 5,840 – 5,860 levels and sharply corrected towards the new contract low of 5,650 levels. In this week price have made a new contract low and finally closed 2.02% lower at 5,679 levels.
For the next week we expect Crude oil prices to find support in the range of 5,620 – 5,600 levels. Trading consistently below 5,600 levels would lead towards the strong support at 5,540 levels and then finally towards the major support at 5,480 levels.
Resistance is now observed in the range of 5,740 - 5,760 levels. Trading consistently above 5,760 levels would lead the rally towards the strong resistance at 5,860 levels, and then finally towards the major resistance at 5,950 levels.
MCX / NYMEX Crude Oil Trading levels for the week
Trend: Down
S1 – 5,600 / $ 92.00 R1 – 5,740 / $ 94.40
S2 – 5,540 / $ 91.00 R2 – 5,860 / $ 96.50
Weekly Recommendation: Sell MCX Crude Oil September between 5740 – 5760, SL – 5860, Target – 5600 / 5580
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