Crude oil prices formed strong bottom last week and recovered sharply after it failed to breach previous week’s low marked on charts at MCX. Prices formed a bullish candlestick formation and is expected to continue its upside movement in the forthcoming week. RSI (14) has recovered steeply and has now reached 63 mark, just below what is seen as overbought zone.
Short term correction may be seen but overall trend in crude oil remains bullish for the forthcoming week. Traders are advised to initiate long positions at lower levels and may target Rs 6250 and 6320/bbl mark at MCX. At NYMEX, strong upside breakout can be seen in case prices manage to close above $101/bbl mark.