Mcx crude oil future this week closed at 3060 with loss. This was forth losing week for oil prices. This week saw crude oil future high at 3121 while low was at 3013. Almost 100+ points range and negative closing on profit booking.
Mcx crude oil weekly chart price trend and momentum both are down. Prices are trading below all short term averages with bearish price patterns. Prices are down but trading in very narrow range suggesting accumulation before next big move. On upside 3105 is 5 and 20 weeks average level and 3155 is 50 week average level and strong resistance zone. Weekly chart RSI is at 47 with bearish pattern but MACD is -51 and with bullish crossover and divergence.
For month of august, mcx crude oil future opened strong but profit booking retraced prices towards major support of 3075 rupee and on upside prices capped by 3250 resistance zone while on downside prices are support around 3000 and hovering in and out around 3075 level.
On daily chart setup, mcx crude oil future is hovering around short term average and now closed above all averages with bullish outlook. On downside 2940 and 2690 are major averages support zone and if crude oil prices sustain below them then expect lower level targets of 2940 and 2690.
From long term view, mcx crude oil future has given bearish breakdown below 3050 levels and turned bearish for 2017. Now after making bottom at 2730, given swing high around 3250 and now hovering round 3055. If hold 3055 then medium term upside targets of 3400 then 3600 and last 4300.
In last 7 month 6 months were losing months for oil prices which reflects bearishness of the market towards this energy commodity.