Crude oil costs tumbled final week. The Brent crude oil futures on the Intercontinental Alternate (ICE) ($65.60/barrel) was down 9.9 per cent. Whereas the crude oil futures on the MCX (₹5,311/barrel) misplaced 10.7 per cent.
Brent futures ($65.60)
Brent crude oil futures rallied within the first half of final week and marked a excessive of $75.5 on Wednesday. However it fell sharply for the remainder of the week.
The decline resulted within the contract breaching a key help at $69. There’s a help forward at $65.
Nevertheless, on the again of this, Brent futures can see a brief corrective rally however not a bullish pattern reversal. A fall beneath $65 can drag it to $58.
In case there’s a restoration, solely a transparent breakout of $77 can carry again the bullishness.
MCX-Crude oil (₹5,311)
The April crude oil futures surpassed the important thing ₹6,000-mark early final week. Nevertheless, the rally didn’t maintain.
The contract, after marking a excessive of ₹6,182 on Tuesday, fell significantly. It broke the help at ₹5,750 and ₹5,500, a bearish signal. The crude oil futures marked a four-year low of ₹5,219 on Friday earlier than seeing a minor restoration.
That mentioned, from the present degree, we predict a minor pull again, presumably to ₹5,500 or ₹5,700. Submit this transfer, crude oil futures can resume the decline.
Notable help ranges beneath ₹5,250 are at ₹4,700 and ₹4,300.
For the contract to show the outlook optimistic, it ought to cross over the important thing resistance degree of ₹5,750. Till then, bears might be .
Commerce technique: Keep out for now. When crude oil futures rises to ₹5,600 go quick with a stop-loss at ₹5,800. Guide earnings at ₹5,000.
Revealed on April 5, 2025
