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.
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.