Crude oil weekly outlook 7 to 11 April 2014
Crude oil daily chart technical analysis
MCX Crude oil on last trading session closed at 6080 with gain. On daily chart, crude oil price trend is down but momentum is building from long side as showing resilience to selling as well as weak rupee helping to add premium to prices.
On daily chart, crude is trading below major average but recovery patterns on indicators and “double bottom” on candlestick chart.
For next week, crude oil support zones are 5980 and 5800, which are previous swing lows. 5980 is double bottom level and 6150 will be neckline breakout level.
On upside 6120 is 3 month average and first major resistance and then 6150 is next resistance and previous swing top.
On indicators and oscillators, RSI is below 50 but with recovery pattern and CCI is -12 and off the lows.
Traders with stop loss below 5980 keep long view for crude future and expect targets of 6150-6200 in next week.
Crude oil weekly chart technical analysis
MCX Crude oil this week closed with loss of 0.57%. This week crude hit high at 6140 while low was at 5933. Total 200 rupees or 3% plus weekly range and closed with loss. After correction, crude is consolidating near its 12-month average.
From medium to long term view, 5980 is 12-month average level and first support on downside while below that 5650 is 2 years average level and last support level for investors. On upside 6150 and 6300 are resistances of previous swing highs. Weekly chart, RSI is 51 but with bearish divergence and CCI is +61 and heading towards zero with bearish divergence.
Traders above 5980 on weekly closing basis keep long view for targets 6150 to 6300 in upcoming weeks. Any weekly closing below 5980 will result in deep downside up to 5600.