MCX Crude Oil futures can rally up to Rs 8,300; Key levels to watch out

The bias is likely to remain bullish as long as Crude Oil futures sustain above Rs 7,830, below which the next crucial support is at Rs 7,730.

Crude Oil

Bias: Positive

Last close: 7,880 

Target: Rs 8,300

Upside: 5.7%

The MCX Crude Oil futures seem poised for further gains this week as select key momentum oscillators are on the verge of turning favourable on the daily charts. 

The 14-day RSI (Relative Strength Index) is showing signs of firming up, while the MACD (Moving Average Convergence and Divergence) may soon turn positive. As per the price-to-moving averages action, the commodity needs to sustain above Rs 7,830-odd levels for the bullishness to gain momentum. Below, which the next crucial support of Crude Oil futures is at Rs 7,730.

The MCX Crude Oil futures on the upside can rally towards the higher-end of the Bollinger Band on the daily charts, indicating an upside target of Rs 8,300 - a gain of 5.7 per cent when compared to Tuesday's close at Rs 7,880.

As per the daily Fibonacci chart, on Wednesday, Crude Oil prices are likely to seek support around Rs 7,785 - 7,710 - 7,610; whereas on the upside may face resistance around Rs 7,975 - 8,050 - 8,150.

Natural Gas

Bias: Positive

Last close: Rs 545.30

Support: Rs 534.50

Resistance: Rs 556

The MCX Natural Gas futures have managed to bounce back above the short-term moving averages in a jiffy, thus underlining the strength at the counter. The short-term trend is likely to remain bullish as long as the counter trades above the Rs 500-mark.

Sustained buying activity at the counter can lead to a rally towards Rs 590-odd levels, as indicated by the higher-end of the Bollinger Band. The weekly charts indicates some resistance around Rs 550, above which the commodity could gain momentum.

However, the key momentum oscillators are indicating a mixed outlook for Natural Gas. The 14-day RSI has corrected from the overbought zone, and the MACD too has turned negative. The ADX (Average Direcetional Index) indicates lack of strength in the current trend.

As per the daily charts, Natural Gas futures on Wednesday can face resistance around Rs 551.80 - 553.90 - 556; whereas on the downside may seek support around Rs 538.70 - 536.70 - 534.50.