MCX Crude Oil: Will It Hit 7000 Levels?
CommodityOnline | Aug 28, 2013 06:59AM ET
MCX Crude Oil price has been trading within the upward-sloping trend channel since the past four months forming higher tops and higher bottoms. The break out from 6000 levels witnessed steady rally towards 6700 levels. The price has recently broken the previous high and channel resistances at Rs 6500 and gave a sharp rally thereafter.
The 14-period RSI is currently pointing higher and holding well above the 50 marks indicates further upside momentum. As long as the price sustains above short-term channel support line at Rs.6500 level on a daily closing basis, Buying on dips is advisable.
Crude oil is following a triangle pattern, breaking these levels may witness steady rise to 7000 levels. Traders are advised to stay on buying side.
On charts, crude oil is showing bullish phenomenon and prices are trading at overbought levels. MACD and P-ROC (Rate of Change) is at bullish territory.
Aggressive sell off is expected at 7000 levels for crude oil, hence slight downtrend is expected in near term.
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