MCX-Crude Oil (₹3,174)

Taking support at around ₹3,100 per barrel in late March, the MCX-Crude oil futures contract started to move higher. However, it encountered a key resistance in the band between ₹3,450 and ₹3,480 in mid-April and began to decline. The contract subsequently resumed its down-move. It is currently testing the significant support level of ₹3,100 once again, with negative bias. The daily indicators are featuring in the bearish zone, indicating weakness and also backing the contract’s short-term downtrend. There is a possibility of the contract breaking below ₹3,100 in the near term. Such a decisive break below this support can pull it down to ₹3,000 and ₹2,900 in the short to medium term. Nevertheless, if the contract manages to reverse higher from ₹3,100, it can go to ₹3,300 levels in the short term. The contract can trade sideways in the band between ₹3,100 and ₹3,480 levels for a while. A strong break above ₹3,480 is needed to alter the short-term downtrend and take the contract higher to ₹3,600 and then to ₹3,700 levels.

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