Crude Oil Trending Down, Support 5900
CommodityOnline | May 12, 2014 06:12AM ET
MCX Crude oil May as seen in the weekly chart above has opened the week at 5,991 levels and during this week price made a low of 5,965 levels. During this week prices bounced from the weekly lower levels towards the weekly high of 6,069 levels. At the end of the week as expected prices could not able to sustain on higher levels and corrected back towards 5,988 levels. During this week price are able to close below the previous week’s closing of 6,010 levels and finally closed 0.28% lower on 5,993 levels.
For the next week we expect Crude oil prices to find support in the range of 5,920 – 5,900 levels. Trading consistently below 5,900 levels would lead towards the strong support at 5,780 levels.
Resistance is now observed in the range of 6,050-6,100 levels. Trading consistently above 6,100 levels would lead the rally towards the strong resistance at 6,200 levels, and then finally towards the major resistance at 6,300 levels.
MCX / NYMEX Crude Oil Trading levels for the week
Trend: Down
S1 – 5,900 / $ 98.40 R1 – 6,100 / $ 100.80
S2 – 5,780 / $ 96.50 R2 – 6,200/ $ 103.40
Weekly Recommendation: Sell MCX Crude Oil May between 6,070 – 6,100, SL - 6,200, Target – 5,900 / 5,850.
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