BL Research Bureau:
Crude oil futures traded on the Multi Commodity Exchange (MCX) have found support at around Rs. 2,720/barrel in late-January and moved sideways forming a double bottom pattern with neckline at Rs. 3,300
levels. In mid-April, the contract decisively broke out of this bullish
reversal pattern and continued to trend northwards. The contract
achieved the pattern price target of Rs. 3,900
last week and is currently hovering around this level. Moreover, the
contract faces a key long-term resistance in the band between Rs. 4,000 and Rs. 4,150
which is crucial trend deciding level. An emphatic break out of this
resistance band is required to strengthen the uptrend and take the
contract northwards to Rs. 4,500 in the medium term.
As
the contract’s daily indicators and oscillators are loosing bullish
momentum, there is a threat of a near-term corrective decline can
happen. Such inability to break the key resistance band can pull the
contract down to Rs. 3,700 and then to Rs. 3,500
levels. Traders with a short-term perspective with high risk appetite
can initiate short position on such downward reversal with a stop-loss
at Rs. 4,000.
MCX natural gas
: MCX natural gas futures took support at Rs. 155
per mmBtu in early and late-April and started to trend upwards.
Subsequently, the contract breached its 21- and 50-day moving averages
and a key resistance at Rs. 170. Short-term trend is up. The contract now hovers around Rs. 186. On going, the uptrend can extend and reach the price targets of Rs. 200 and then Rs. 205 in the short term. Traders can initiate long position with a stop-loss at Rs. 180. Significant support below Rs. 180 is at Rs. 170 and then in the band between Rs. 155-160.
Source: BusinessLine
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