Crude February contract on MCX inched 73 rupees up to settle at 5777. Crude is getting strong support near previous top of March 2012 and prices bounced nicely after hitting a low of 5640. 10 weeks SMA is below 20 weeks SMA showing weakness in short term trend. 20 weeks SMA is above 50 weeks SMA keeping longer term bullish trend in place. MACD is holding near zero line showing bearish momentum in this commodity. Stochastic is hesitating to cross above 30 and again entering in oversold territory that may keep prices under pressure. Immediate support is now seen near 5640 any sustained move below that level would bring more weakness and then down side move would extend towards 5550 and then 5350 zones. Immediate resistance is now seen near 5830 and any sustained move above that level would bring a retest to 5900 zones. Key resistance would remain at 5930 and any sustained move above that level would bring more charm and then rally towards 6000 and more upside cant be ruled out.
Trading range for the week is expected among the key support at 5500 and resistance at 6600.
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