Crude Oil Closes Below Crucial Support Of 5750

Published 01/15/2014, 06:28 AM
Crude Oil
Crude oil prices continued trading lower last week and prices breached and closed below the crucial support of Rs 5750/bbl at MCX. Prices patterns sug-gest the counter is in strong bearish hands and any upside can be seen as an opportunity to initiate short positions.

Prices are trading in technical oversold zone and hence a pullback in prices cannot be ignored. Long term moving averages have shifted in favor of bears and if prices manage to sustain below Rs 5650/bbl in the forthcoming week, we can see a panic selling towards Rs 5350 odd levels. On the higher side, prices are expected to find a strong re-sistance around Rs 5900/bbl mark where fresh short can be built.


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