Mcx crude oil future is trading at 2947 with loss for the day. Crude oil future after strong breakdown below 3075 hit downside target of 2940 with low of 2935 in last trading session. Now below 2940 next major support is around 2700 rupee and fall continues that will be next bearish breakdown target for this commodity in short terms.
For month of august, mcx crude oil future opened strong but profit booking retraced prices towards major support of 3075 rupee and prices were hovering around 3075 for long time then we saw sharp breakdown below 3075 and crude oil prices hit 2940 bearish target and now heading for next target.
On daily chart setup, mcx crude oil future is in absolute downtrend with very bearish price patterns. On downside 2940 target done and now 2700 is major support as well as target zone. On upside 2960 is 5 day average resistance then 3050 is 20 and 50 days average level and strong resistance zone. Daily chart RSI is at 34 and with sell signal and heading for oversold zones. MACD is -25 and heading lower with sell off signal.
Mcx crude oil weekly chart price trend and momentum both are down. This week we seeing big breakdown candle. Prices are trading below all short term averages with strong bearish price patterns. Prices are moving towards previous bottom on weekly chart which was around 2732. On upside 3010 is 5 and 3082 is 20 weeks average level and 3145 is 50 week average level and strong resistance zone. Weekly chart RSI is at 40 with bearish pattern but MACD is -65 and at fresh sell signal.
From long term view, mcx crude oil future has given bearish breakdown below 3050 levels and turned bearish for 2017. After making bottom at 2730, given swing high around 3250 and now once again below 3055 and heading lower towards 2730 bottom while on downside my 2017 bearish investment target is around 2400 rupees.
In last 7 month 6 months were losing months for oil prices which reflects bearishness of the market towards this energy commodity. This month’s candle wiped out last month gains and suggesting major breakdown on chart.