MCX Crude Oil March is hinting bearish for the week due to weak Nymex prices. Crude Oil is now trading around 5012-5046 levels.
The bearish flag pattern from last week continues as the commodity is moving towards lower levels. The bump and run reversal pattern was over at 20 day SMA at 5189 levels, thereafter it was witnessing steady decline to medium levels. Nymex Crude Oil closed at $92.36 levels.
On charts, Crude Oil is witnessing bearish phenomenon. The commodity is trading well below the 20 day SMA, hence chances for recovery in a short term is only a hope. The commodity may hold bearish flag pattern for the coming days.
The Stochastic level is still at the oversold territory. MACD is negative and RSI at 26.78 is not a corrective term at all. Rate of change oscillator (P-ROC) is still in the negative territory at lower levels.
If the commodity breaches 5086 levels, it may witness a bullish rally in the near term. But the bearish fundamentals and weak Nymex prices may impact the Crude Oil prices.
S1: 5026 S2: 4998
R1: 5060 R2: 5086
Trend: Bearish