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Crude oil retains the upward bias in pattern. Nevertheless, the Brent crude oil futures on the Intercontinental Exchange (ICE) ended final week virtually flat at $86.5 per barrel. But the crude oil futures on the MCX was up 2.5 per cent because it closed the week at ₹6,977 a barrel.
Brent futures ($86.5)
Brent Crude futures, regardless of a sell-off on Friday, remained above the essential help at $84. Thus, it maintains the bullish bias, conserving the possibilities excessive for a rally. However, earlier than the subsequent upswing, there might be a minor correction in worth, most likely to $84-85 worth band.
An up-move, both from the present market worth or after a dip to the above-mentioned worth band, can carry Brent futures to $92, its nearest notable barrier. Subsequent resistance is at $98. But if the contract declines beneath $84, it might probably prolong the downward transfer to $81, a superb base.
MCX-Crude oil (₹6,977)
Crude oil futures (July expiry) ended final week with a achieve, primarily resulting from the rally on Monday. For the remainder of the week, the contract was largely buying and selling inside ₹6,900 and ₹7,040. But because it stands, the uptrend is legitimate and the worth can contact ₹7,250.
But earlier than that, the contract may see a dip in worth, probably to the area of ₹6,750-6,800. In case the fall extends past ₹6,750, the crude oil futures may decline to ₹6,500. A breach of ₹6,500 can flip the near-term outlook bearish.
Trade technique: We really helpful lengthy at ₹6,750 two weeks in the past. Exit this commerce at session open on Monday.
For contemporary commerce, await the worth to melt to ₹6,800 after which go lengthy with a stop-loss at ₹6,600. When the contract rises above ₹7,050 publish initiating this place, tighten the stop-loss to ₹6,900. Book earnings at ₹7,250.
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