Key support for MCX Crude Oil at Rs 7,550; Natural Gas may be range-bound
The MCX Crude Oil futures has near support at Rs 7,550, below which it can slide towards the 200-DMA. Natural Gas need to sustain above the 20-DMA to maintain its positive bias.
The MCX Crude Oil futures continue to trade below its key moving averages – 20-, 50- and 100-DMA (Daily Moving Average) on the daily chart. The bias too seems clearly in favour of the bears, with the possibility of oil prices testing the 200-DMA around Rs 7,150-odd level. However, the energy-based commodity has some near support around Rs 7,550.
Last close: Rs 7,670
Resistance: Rs 8,150, Rs 8,300
Support: Rs 7,550
Downside Target: Rs 7,150
The MCX Crude Oil futures are currently seen testing resistance around the lower-end of the Bollinger Band on the daily charts at Rs 7,550-odd levels. As long as the commodity holds above this level, a pullback to Rs 8,100-odd level cannot be ruled out.
On the downside, sustained trade below Rs 7,550, can trigger a slide towards Rs 7,150-level, its next logical support at 200-DMA. As per the weekly chart, Crude Oil has an interim support around Rs 7,330-level, which is the lower-end of the weekly Bollinger Band.
Further, the weekly chart indicates a gloomier outlook for the Crude Oil futures. With potential downside targets around Rs 6,800 and Rs 5,450 – its 50-WMA (weekly Moving Average) and 100-WMA, respectively.
As per the weekly Fibonacci chart too MCX Crude Oil futures have a crucial support at Rs 7,550, below which the downside could accentuate. On the upside, the commodity is expected to face resistance around Rs 7,835 to Rs 8,030, during the remainder of the week.
On Wednesday, the MCX Crude Oil July futures are likely to trade in a broad range of Rs 7,330 to Rs 8,000, with support expected around Rs 7,550 – Rs 7,465 – 7,400; whereas resistance on the upside seems likely around Rs 7,790 – 7,875 – 7,940.
Last close: Rs 497.50
Support: Rs 484.85, Rs 462
Resistance: 510, 533
The MCX Natural Gas futures have recovered notable ground from its recent low of Rs 425. The commodity, however, seems to be facing resistance around the 20-DMA and 100-DMa placed at Rs 498.50 and Rs 517, respectively.
Natural Gas futures need to sustain above Rs 517 on a consistent basis for further gains to emerge. On the upside, the commodity may look to pull-back towards its 50-DMA and the higher-end of the Bollinger Band on the daily charts at Rs 590 and Rs 574, respectively.
On the flip side, in case, the commodity fails to sustain above the 20-DMA, it can slide back to re-test its 200-DMA around Rs 430-odd level.
On Wednesday, as per the daily Fibonacci chart, MCX Natural Gas July futures may seek support around Rs 484.85 – 475.50 – 462. On the upside, the commodity could face resistance around Rs 510 – 519.50 – 533.