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MCX-Crude Oil: Hovering around a crucial support level

The crude oil futures contract traded on the Multi Commodity Exchange has been hovering around its crucial support at INR 5,950/barrel over the last one week. At the moment, the outlook is not very clear and there exist the danger of a fall. Only a decisive close above the psychological INR 6,000 level will ease the threat and can take the contract higher to INR 6,250 in the short-term. But, inability to breach INR 6,000 now could be bearish for the contract.

In such a scenario traders with a short-term perspective can consider initiating fresh short position at ₹5,930. Stop-loss can be kept at INR 6,015 for the target of INR 5,830.

MCX-natural gas: The MCX-natural gas futures contract has risen over 2 per cent in the last one week. However, this could just be a corrective rally of the strong down trend that is in place since June.

This rally could extend further in the coming days. But it could be restricted to the significant resistance level of INR 255. The probability is less for the contract to breach this resistance immediately. Traders can avoid trading this contract at the moment and wait for a rally to initiate short position at a higher level.

A reversal from INR 255 will be a good opportunity for short-term traders to go short in this contract. In such a scenario, go short at INR 253 with a stop-loss at INR 258 for the target of INR 235.

Source-On Request