The medium-term price trend still looks bearish and the downside move is now likely to extend further towards the previous low at 3543/3415 level.
As per our previous recommendation dated 01st December 2014 of going Short on MCX Crude Oil , our Fourth target of Rs 3733 has achieved. Hence, in our view, profits on Short positions (as per our previous recommendation) should be booked at the current levels (cmp 3718) & fresh short should be initiated on rise in January contract.
The medium-term price trend still looks bearish and the downside move is now likely to extend further towards the previous low at 3543/3415 level. The 14-period RSI is above the support line and continues to trade lower indicating bearish momentum over the medium term (RSI is in Oversold position).