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Crude oil Weekly View According to Chart

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Posted by : Nifm
13 January, 2014, 6:01 PM
Crude January contract on MCX inched 193 rupees down to settle at 5704. Crude settled well below 50 weeks SMA and 61.8% Fibonacci retracement level. 10 weeks SMA is below 20 weeks SMA and now approaching 50 weeks SMA from above for a bearish cross that would trigger more weakness in this commodity. MACD is already below signal line and now falling below zero line which is hinting more weakness in this commodity. Stochastic is also failing to hold above 50 and has given bearish cross supporting bearishness in this commodity. Immediate support is now seen near weekly low at 5669 and then at horizontal line near 5630-5600 zones that may provide a temporary support to falling crude prices whereas failure of 5630 on closing basis would bring more weakness and then current bearish move may extend towards 5350 and more down side. Resistance is now seen near weekly high at 5918 any sustained move above that level may bring some charm in this commodity and then we may see attempts for retest to 6000-6100 zones but commodity is likely to remain in bearish posture for short term and failure of 5600 would supply more power to crude bears for a retest to 5400-5350 zones.   Trading range for the week is expected among the key support at 5500 and resistance at 5840.   Recommendation: * Now selling crude on jumps around 5800-5830 with stop loss above 5920 for targeting 5650-5500 and more down side. * In another scenario selling crude below 5660 with stop loss above 5710 for targeting 5600-5550-5500 and more down side. * Buying can be taken above 5920 with stop loss below 5860 for targeting 6000-6050 and more upside.

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