Resistance is now observed in the range of 5,720 - 5,730 levels. Trading consistently above 5,730 levels would lead the rally towards the strong resistance at 5,800 levels, and then finally towards the major resistance at 5,880 levels.
MCX Crude oil Sept as seen in the weekly chart above has opened the week at 5,640 levels and during this week it made a high of 5,708 levels. As expected during this week prices could not able to sustain on the higher level and corrected sharply towards the contract low of 5,526 levels. At the end of the week prices bounced back from the lower levels towards 5,707 levels. In the week prices closed above the previous week’s closing of 5,642 levels and finally, prices have closed 0.53% higher at 5,672 levels. As per the Technical chart it is in bearish trend from last couple of weeks but last week it formed a positive candlestick.
For the next week we expect Crude oil prices to find support in the range of 5,550 – 5,530 levels. Trading consistently below 5,530 levels would lead towards the strong support at 5,460 levels and then finally towards the major support at 5,400 levels.
Resistance is now observed in the range of 5,720 - 5,730 levels. Trading consistently above 5,730 levels would lead the rally towards the strong resistance at 5,800 levels, and then finally towards the major resistance at 5,880 levels.
MCX / NYMEX Crude Oil Trading levels for the week
Trend: Sideways Down
S1 – 5,550 / $ 90.00 R1 – 5,730 / $ 93.10
S2 – 5,460 / $ 88.80 R2 – 5,800 / $ 94.50
Weekly Recommendation: Sell MCX Crude Oil September between 5720 – 5730, SL – 5800, Target – 5550 / 5530