Mcx crude oil future in month of September, closed at 3373 with huge gain. This was first gaining month for mcx crude oil future after profit booking in august series. In September, mcx crude oil future hit high at 3472 while recorded low of 2984 and closed near high with bullish outlook. Total almost 500 rupee month range and strong closing for mcx crude oil future on sharp short covering and long term value buying.
For month of October, mcx crude oil future has major support at 3280 and above it remain strong and buy and accumulate for big upside targets. On upside mcx crude oil future will have resistance as well as buy targets around 3575 and then 3765 rupee for October series. If fails to hold 3280 support and breakdown decisively with strong price action and on volume then go short with stop loss for bearish targets up to 3090 and then 2790.
On daily chart, mcx crude oil is in strong short term bull run and we saw rally start at 2980 rupee level and hit high at 3472. Now consolidating before next major move. If after consolidation and correction holds 3280 support then go long for big upside targets of 3575 and then possibly 3765 rupee. but on daily chart RSI is in overbought condition but with buy signal while MACD is at 120 and with bullish crossover.
For energy commodity traders, mcx crude oil future outlook above 3280 remain strong bearish and trading strategy will remain buy and accumulate with swing targets 3575 and then 3765. But if crude comes down below 3280 from overbought condition then that will be best short selling opportunity with stop loss for big downside targets up to 3090 and then 2790.