Crude Oil To Gain, Strong Support 5800

Published 01/07/2014, 05:10 AM
Crude Oil
Crude oil prices tumbled and lost around 6% last week, eroded previous four weeks gains and plummeted to the lowest level of four week. Prices closed below 61.8% of retracement of a rise from Rs. 5752/bbl to Rs. 6272/bbl, and even sustaining below the levels. Crude oil prices would now be facing a very strong support around Rs. 5800/bbl on a closing basis, if prices could sustain below after that, then could face severe selling pressure thereafter and the counter might slip further till the lower levels near Rs. 5500-5550/bbl in the coming few days, and a new bull run would be expected after that for longer period. For next week we expect prices to gain in the initial days as an immediate bounce back cannot be ruled out at these levels after such sharp fall.

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