Crude oil prices to find support in the range of 4,850 – 4,860 levels. Trading consistently below 4,850 levels would lead towards the strong support at 4,780 levels and then finally towards the major support at 4,700 levels.
MCX Crude oil November as seen in the weekly chart above has opened the week at 4,975 levels and prices made a high of 5,095 levels. During this week price could not sustain higher levels and fell sharply lower towards the low of 4,898 levels. This week prices have closed 0.74% lower at 4,931 levels, its lowest level in 17 months. Technically, as per the candlestick pattern prices have formed “Bearish candlestick” indicating downside move.
For the next week we expect Crude oil prices to find support in the range of 4,850 – 4,860 levels. Trading consistently below 4,850 levels would lead towards the strong support at 4,780 levels and then finally towards the major support at 4,700 levels.
Resistance is now observed in the range of 4,990 - 5,000 levels. Trading consistently above 5,000 levels would lead the rally towards the strong resistance at 5,095 levels, and then finally towards the major resistance at 5,200 levels.
MCX / NYMEX Crude Oil Trading levels for the week
Trend: Down
S1 – 4,850 / $ 79.30 R1 – 5,000 / $ 81.80
S2 – 4,780 / $ 78.20 R2 – 5,095 / $ 83.30
Weekly Recommendation: Sell MCX Crude Oil November between 4990 – 5000, SL – 5095, Target – 4850 / 4780