MCX Crude Oil, Natural Gas: Key trading levels to watch out on April 13

MCX Crude Oil futures can test the 20-DMA in the near term placed at Rs 7,900-odd level.

Crude Oil
Bias: Positive
Target: Rs 7,900
Support: Rs 7,550

MCX Crude Oil futures have bounced back smartly after testing the lower-end of the Bollinger Band on the daily charts. Crude Oil prices are currently testing the resistance around the 50-DMA (Daily Moving Average) placed at Rs 7,630-odd levels, above which Crude Oil can spurt to Rs 7,900-odd levels - its 20-DMA.

In the short-term one can expect Crude Oil to gyrate between the broad range of Rs 7,000 to Rs 7,900, until a decisive trend emerges. 

The key momentum oscillators are mixed on the daily charts, with the MACD (Moving Average Convergence and Divergence) and Stochastic oscillators seen recovering, while the 14-RSI placed in neutral zone. The ADX (Average Directional Index) is also below the zero line, indicating lack of strength in the existing trend.

According to the weekly Fibonacci chart, MCX Crude Oil has given a buy signal, thus indicating further upside of Rs 7,780 to Rs 7,850. The weekly bias is likely to remain bullish as long as Crude Oil prices sustain above Rs 7,550.

On Wednesday, Crude Oil futures may trade in a broad range of Rs 7,400 to Rs 7,900, with support expected around Rs 7,550 - 7,490; and resistance likely around Rs 7,800 - 7,855.

Natural Gas
Bias: Positive
Support: Rs 495
Resistance: Rs 521

Natural Gas has been treading higher along with the higher-end of the Bollinger Band on the daily charts. The commodity on Tuesday crossed the higher-end of the Bollinger Band placed at Rs 521 in intra-day trades, but re-treated towards the close owing to profit-taking at higher levels.

The price-to-moving averages remains extremely bullish for the commodity, with the 20-DMA placed way below at Rs 435-odd levels. In the very near-term, MCX Natural Gas futures can expect support in the range of Rs 485 to Rs 495. Whereas, on the upside, the commodity needs to break and close above Rs 521, for further upside.

The key momentum oscillators on the charts are showing some signs of tiredness, hence one cam expect the commodity to witness pressure on the upside. The MACD (Moving Average Convergence and Divergence) and Stochastic oscillators are showing signs of tiredness, while the 14-day RSI too had entered overbought territory. The ADX (Average Directional Index) indicates lack of strength at current levels.

According to the quarterly Fibonacci chart, the commodity has tested the higher-end of the expected trading band for the current quarter around Rs 528-odd levels. In case, the commodity fails to conquer this, the price can decline towards Rs 490 to Rs 460 in the quarter.

On Wednesday, MCX Natural Gas futures are expected to seek support around Rs 497.60 - 494.60 - 491.50. On the upside, the commodity is likely to face resistance around Rs 517.30 - 520.40 - 523.50.