Crude January contract on MCX inched 158 rupees up to settle at 6192.
Commodity has witnessed a nice recovery from 61.8% Fibonacci correction. 10 weeks SMA is below 20 weeks SMA supporting short term weakness in this commodity. 10 and 20 weeks SMA both are above 50 weeks SMA keeping general bullish trend in place on longer term picture. Stochastic is recovering from oversold territory and indicating a possible recovery in this commodity. MACD is hovering near zero line with bearish cross under signal line and any failure below zero line would trigger fresh bearish move in this commodity. Immediate support is now placed at 6100 and then at 6080 any sustained move below 6080 would bring a retest to 6000-5940 zones. Areas of 5930-5900 are expected to remain key support and commodity may rally towards 6300 and more upside if manage to hold well above 5940 zones in coming days. Resistance is now seen near 6250 zones any sustained move above that level would bring 6400 and more upside in coming days. Overall trend is still bullish on bigger time frames.
Trading range for the week is expected among the key support at 5500 and resistance at 6600.
* Buying crude on dips around 6130-6090 with stop loss below 5970 for targeting 6300-6400 and more upside might be appropriate in short term.
* In alternative scenario buying above 6250 with stop loss below 6180 for targeting 6340-6400 and more upside might be appropriate.
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