Comments
OPEC deciding to cut output saw the MCX-Crude oil contract surging over 9 per cent in the past week. A key trendline resistance is at ₹3,550 per barrel which was tested in the past week. The contract will need to break above this hurdle decisively to extend the current rally. Such a break will boost the bullish momentum. The broader view remains bullish with strong support in the ₹3,000-2,900 zone. This leaves the possibility high for it to break above ₹3,550 in the coming weeks. Such a break will pave the way for a fresh rally to ₹3,900 and ₹4,000. But inability to break above ₹3,550 may trigger a short-term reversal. A pull-back from ₹3,550 will increase the likelihood of the contract falling to ₹3,350 initially. Further break below ₹3,350 can drag it to ₹3,100 or even ₹3,000. The outlook for the contract will turn negative only if it declines below ₹2,900 decisively. The next target will be ₹2,700. But the possibility of a fall below ₹2,900 is low at this juncture.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.