Crude oil MCX continued its bull trend for last four weeks, ending the week up by Rs50 (1%). We expect the bullish trend to continue, even though its reaching a near term resistance of 5400. Breaching 5400 would push the prices further higher until 5500. Crude oil prices are seen taking immediate support near the 5150 mark for the initial half of week. An upside breakout in the USD/INR has kept the dollar denominated commodities at positive bias as the fall is limited. Crude oil could be seen trading in consolidation mode with positive bias as near-term resistance is approaching. Buying could be seen near 5220 levels.
The entire bullish trend could be void if crude oil closes below 506,0 changing the trend to bearish for a downside target of 4800. As of now, one can buy in dips towards Rs 5220 for the possible target of 5400, then 5472 by placing a stop below Rs 5050 per barrel.
Support: 5220, 5180
Resistance: 5350, 5430