Crude oil November contract on mcx inched 75 rupees lower to settle at 5820.
Crude headed a low of 5811 and then settled nearer the lower end of the days trading range. Stochastic indicator is now producing extreme oversold reading which would result in a sharp recovery any time. And areas of 5800-5600 are very crucial to watch on nymex good support seen near $92-91.50 zones and recovery is likely.
Immediate support is now seen near 5811 any failure would call for a decline towards 5755-5700 zones. Resistance is now seen near 5870 and then at 5900 any sustained move above 5900 would result in more bullishness and then commodity may try heading towards 5960 and more upside.
Crude oil inventory data is also due out today which is expected 1.7M against 4.1M prior. Expectations are showing a decline in inventories against previous weeks inventory and declining inventory indicates physical demand and an underlying bullish factor for this commodity.
Trading range for the day is expected among the key support at 5800 and resistance at 6700.
Buying crude around 5850-5830 with stop loss below 5700 (closing basis) for targeting 6010-6105 and more upside in near term.
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