The medium-term price trend still looks bearish and the downside move is now likely to extend further towards the previous low at Rs.4716 level.
As per our previous recommendation dated 11th September 2014 of going Short on MCX Crude Oil , our first target of Rs 5190 has achieved. Hence, in our view, profits on Short positions (as per our previous recommendation) should be booked at the current levels due to expire and fresh Short positions should be initiated on rise in November contract. The medium-term price trend still looks bearish and the downside move is now likely to extend further towards the previous low at Rs.4716 level.
The 14-period RSI is above the support line and continues to trade lower indicating bearish momentum over the medium term.