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Crude oil Weekly Outlook

Crude traded with negative bias this week and then settled at 5839 with 153 rupees decline. Commodity settled well nearer 61.80% Fibonacci correction and getting good support nearer the same. 10 and 20 weeks SMAs are above 50 weeks SMA but 10 weeks SMA has given a bearish cross under 20 weeks SMA that hint weakening near term momentum. MACD has given bearish cross under signal line but holding above zero line hinting sideways move. Stochastic producing oversold reading and may bring a short term recovery in this commodity any time. Immediate support is now seen near weekly low at 5761 and then at any sustained move below this level would bring a retest to 5655 and then 5500 zones. Resistance is now seen near weekly high at 5980 any sustained move above that level would bring an attempt towards 6100-6110 zones. Any established move above 6110 would result in a strong bullish move and then we may see an attempt towards 6300 and more upside.

Trading range for the week is expected among the key support at 5700 and resistance at 6100.

Recommendation:

* Buying crude above 5980 with stop loss below 5900 for targeting 6050-6100 and more upside.

* In alternative scenario selling below 5750 with stop loss above 5830 for targeting 5660-5500.

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