MCX Crude oil weekly report 5-9 May 2014
Crude oil daily chart technical analysis
MCX crude oil future on last trading session closed at 6010 with gain. On daily chart, crude oil price trend and momentum both are bearish. Oil future is trading below short term averages with bearish indicators patterns. Crude future has downside support zones at 5980 and then 5800 while on upside expect strong resistance from market at 6150 and then 6300. 6150 is 1 month and 3 month averages bearish crossover level.
Traders below this 6150 level keep sell on rise view for targets 5980 and then 5800. Small bounce back is expected which can be used for going short.
Crude oil weekly chart technical analysis
MCX crude oil future this week tumbled by 2%. This was third losing week for crude and in these 3 weeks lost almost 350 rupees gains from prices. This week crude hit high at 6185 while low was at 5962. Total 220-rupee range or almost 4% weekly swing in prices and closed with loss. Crude is closed at its 12-month average with loss, which is significant from long-term view. On downside, 6000 rupee is 12-month average support and 5650 is 2 years average support zone. If next week gives closing, below 6000 then crude will test 5650 in upcoming weeks and in that scenario, investors must go short with stop loss 6100 for target 5650 and below.
Stronger rupee and weak WIT prices will make pressure on domestic crude oil prices.