MCX Crude oil March as seen in the weekly chart above has opened the week at 6,387 levels and during this period moved higher and as expected found very strong resistance at 6,550 levels. Later prices corrected sharply towards 6,110 levels but did not able to breach the support level of 6,100 – 6,050 levels and on Friday prices bounced sharply from these support levels towards 6,312 levels. Finally prices are able to close at 6,305 which is the lower level from the previous week’s closing levels.
For the next week we expect Crude prices to find support in the range of 6100 – 6050 levels. Trading consistently below 6,050 levels would lead towards the strong support at 5,900 levels and then finally towards the major support at 5750 levels.
Resistance is now observed in the range of 6400-6450 levels. Trading consistently above 6450 levels would lead the rally towards the strong resistance at 6550 levels, and then finally towards the Major resistance at 6800 levels.
MCX / NYMEX Crude Oil Trading levels for the week
Trend: Down
S1 - 6050 / $ 98.50 R1 - 6450 / $ 104.30
S2 - 5900/ $ 96.00 R2 - 6550/ $ 106.60
Weekly Recommendation: Sell MCX Crude March between 6400 - 6450, SL- 6550, Target - 6100 / 6050.