MCX Crude Oil remains range-bound; bias can turn positive above Rs 6,465

On the flip side, in case, Crude Oil futures break the support at the lower-end the commodity could dip below the Rs 6,000 mark.

So far this week, the MCX Crude Oil futures have struggled to cross and sustain above the short-term moving averages at Rs 6,420; hence it seems likely that the commodity could test the lower-end of the trading range going ahead.

Crude Oil

Bias: Range-bound

Last close: Rs 6,390

Indicative Range: Rs 6,100 - Rs 6,700

Support: Rs 6,260; Rs 6,150

Resistance: Rs 6,420; Rs 6,465

The MCX Crude Oil futures continue to remain trapped in the range of Rs 6,100 to Rs 6,700, with the commodity currently seen struggling to hold its neck above the short-term moving averages.

The short-term moving averages both the 20-DMA (Daily Moving Average) and the 50-DMA coincide at Rs 6,420. Sustained trade below the same, is likely to push Crude Oil prices back towards the lower-end of the indicative trading band i.e. around Rs 6,100 level.

However, in case, Crude Oil futures manage to cross and sustain above Rs 6,420, the energy-based commodity could bounce back towards the higher-end of the trading band i.e. Rs 6,700.

Further, in case, the trading range happens to break on the lower side, Crude Oil futures could dip to Rs 5,760 level, which is the lower-end of the Bollinger Band on the weekly chart, below which the next major support stands at Rs 5,000-mark - the 200-WMA (Weekly Moving Average).

On the positive front, in case, Crude Oil prices break on the higher side, the commodity could rally to Rs 7,250 and Rs 7,400 in a short span of time.

Bias as per the monthly Fibonacci chart remains positive as explained in the previous article. READ MORE

As per the weekly Fibonacci chart, the MCX Crude Oil prices may seek support around Rs 6,160 - Rs 6,100 this week. On the upside, Crude Oil futures need to sustain above Rs 6,465 for bulls to gain control.

On Wednesday, as per the daily Fibonacci chart, the MCX Crude Oil March futures may seek support around Rs 6,300 level, below which it may test the weekly supports. On the upside, the Crude Oil prices are likely to face resistance around Rs 6,420 - Rs 6,440 - Rs 6,470.

Natural Gas

Bias: Negative

Last close: Rs 185.20

Support: Rs 182.50; Rs 178.50

Resistance: Rs 210

The MCX Natural Gas March futures are seen testing support around the lower-end of the Bollinger Band on the daily charts at Rs 182.50. 

In case, the commodity breaks and trades below the same on a consistent basis, the commodity could drop to lower levels of Rs 178.50 - Rs 172.30.

On the other hand, in case, the energy-based commodity manages to sustain above Rs 182.50, a pullback towards its 20-DMA could be possible, indicating an upside target of Rs 210.

Having said that, the overall bias remains bearish on multi-time frames. The momentum oscillators too are in favour of the bears. The monthly Fibonacci chart indicates a downside target of Rs 157.50 for the commodity.

On Wednesday, as per the daily Fibonacci chart, Natural Gas March futures could seek support around Rs 182 - Rs 179.50 - Rs 176; whereas, on the upside, the commodity is expected to meet resistance around Rs 190.90 - Rs 192.60 - Rs 194.40.