MCX Crude oil May as seen in the weekly chart above has opened the week at 6,144 levels and during this week price made a high of 6,184 levels. As expected prices could not able to sustain on higher levels and corrected back towards 5,962 levels. During this week price are able to close below the previous week’s closing of 6,131 levels and finally closed 1.97% lower on 6,010 levels. As per candlestick formation it formed a big “Bearish candlestick” pattern which indicates pessimistic trend for coming trading days.
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 6,150-6,185 levels. Trading consistently above 6,185 levels would lead the rally towards the strong resistance at 6,300 levels, and then finally towards the major resistance at 6,500 levels.
MCX / NYMEX Crude Oil Trading levels for the week
Trend: Down
S1 – 5,900 / $ 98.00 R1 – 6,185 / $ 101.10
S2 – 5,780 / $ 96.50 R2 – 6,300/ $ 103.60
Weekly Recommendation: Sell MCX Crude Oil May between 6,100 – 6,150, SL - 6,300, Target – 5900 / 5,850.