Crude Oil To Trade Sideways, Support 6050-6000
CommodityOnline | Jul 28, 2014 03:47AM ET
At the last trading session of the week prices bounced from the lower levels and finally closed 0.36% lower at 6,150 levels. During this week we saw that prices have moved between the support and resistance levels and as per technically it made a&
MUMBAI: MCX Crude oil Aug as seen in the weekly chart above has opened the week at 6,160 levels and prices made a high of 6,254 levels. As expected during this week price could not able to breach the resistance zone of 6,250 – 6,260 levels and corrected towards the low of 6,086 levels.
At the last trading session of the week prices bounced from the lower levels and finally closed 0.36% lower at 6,150 levels. During this week we saw that prices have moved between the support and resistance levels and as per technically it made a “Doji formation” which indicates the range bound trend.
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 5,900 levels and then finally towards the major support at 5,850 levels.
Resistance is now observed in the range of 6,250 - 6,260 levels. Trading consistently above 6,260 levels would lead the rally towards the strong resistance at 6,360 levels, and then finally towards the major resistance at 6,480 levels.
MCX / NYMEX Crude Oil Trading levels for the week
Trend: Sideways
S1 – 6,000 / $ 99.40 R1 – 6,260 / $ 103.70
S2 – 5,900 / $ 97.80 R2 – 6,360 / $ 105.40
Weekly Recommendation: Buy MCX Crude Oil August between 6,050 – 6,070, SL – 5,980, Target – 6,200 / 6,250
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