MCX Crude Oil September contract last week changed by 105 points up and closed at 3110 on the weekly chart. Last week Crude has witnessed nice recovery after forming a triple bottom near the areas of 2600. This week crude made a high of 3260 but not sustained and settled near the 10 weeks SMA from below. Recent weekly candle is looking like a spinning top that is a sign of recovery may possible in this counter. 10 weeks SMA is staying below 20 weeks SMA keeps an intermediate down trend intact. 20 weeks SMA is below 50 weeks SMA but trending flat that keeps longer term bearish trend intact. MACD has been staying below zero line and recently it has crossed under its signal line that hints accelerating bearish trend. Stochastic is recovered from oversold area and also loaded with bullish momentum that keeps chances alive for bulls. This week crude oil support will be near 3040. If sustained below this level then we will see the target 2900-2850 area. If cross above 3260 then we will see a sharp rally for the nearest target 3400-3500 area in coming days.
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