Crude Oil prices continued to show strength during the week although the price action was not very active but they continuously basked above the strong support zone of Rs 6250/bbl. The small consolidation looks a sign of strength for the prices ahead of the next leg of the rally which can take the prices higher towards Rs 6700/bbl and Rs 6900/bbl in the short term.
The counter is trading above its crucial short and intermediate term moving averages, while the ADX on daily charts at +27 reading is suggesting the trend remains strong. At the same time the RSI which remains above 50 but below the overbought zone leaves ample room for the upside in the prices. Traders are therefore advised to hold long po-sitions with a stop loss below Rs 6250/bbl for the targets mentioned above.