MCX Crude Oil resistance seen at Rs 7,435; Natural Gas faces Rs 515-hurdle

On the downside, the MCX Crude Oil futures have near support at Rs 7,111 and Rs 7,039 levels. Meanwhile, Natural Gas futures likely to get considerable support around Rs 486.

Both the energy based commodities, the MCX Crude Oil and Natural Gas futures are trading with a negative bias on the daily and the weekly chart. The 20-WMA at Rs 7,435 is likely to be a key hurdle for the MCX Crude Oil futures, whereas Rs 515-level should act as a stiff near-term resistance for the latter.

Crude Oil

Bias: Negative

Last close: Rs 7,238

Support: Rs 7,111; Rs 7,039

Resistance: Rs 7,435

The MCX Crude Oil futures are trading below key moving averages, both, on the daily and the weekly charts. In the near term, the energy-based commodity has near resistance around Rs 7,290 and Rs 7,435, indicates the weekly chart. These are the 50-WMA (Weekly Moving Average) and 20-WMA, respectively.

For a sustained recovery in prices, the Crude Oil futures need to trade and sustain above Rs 7,435 in the near term. In case, this does happen, the Crude Oil prices could pullback all the way to Rs 8,450-odd level.

On the daily chart, Crude Oil has somehow managed to tread along its 20-DMA and 50-DMA placed at Rs 7,111 and Rs 7,039, respectively. These levels seem to provide near-term support for the commodity, below which fall to Rs 6,600-level seems imminent.

According to the daily Fibonacci chart, on Thursday, the MCX Crude Oil November futures could trade in a range of Rs 7,120 to Rs 7,356, with support expected around Rs 7,196 - Rs 7,165 - Rs 7,142. On the upside, the Crude Oil futures could face resistance around Rs 7,280 - Rs 7,310 - Rs 7,356. 

Natural Gas

Bias: Negative

Last close: Rs 501.50

Support: Rs 486

Resistance: Rs 515; Rs 531

The MCX Natural Gas November futures bounced back strongly after a prolonged fall in prices. The commodity took support closer to its 100-WMA placed at Rs 377-odd level, and then pulled back. 

Going ahead, the weekly chart indicates that if Natural Gas prices are able to sustain consistently above the 50-WMA placed at Rs 491, the commodity can potentially bounce back all-the-way towards its 20-WMA at Rs 588-odd level.

As per the daily chart, Natural Gas futures are currently trading below all key moving averages, with near resistance seen at Rs 515 - its 20-DMA, above which the next immediate hurdle is at Rs 531 - the 200-DMA.

Key momentum oscillators on the daily and the weekly chart are indicating mixed signals, hence we may witness some volatility in the coming trading sessions.

According to the weekly Fibonacci chart, the MCX Natural Gas November futures are likely to trade with a positive bias, as long as prices sustain above Rs 486-level, below which the next significant support levels are at Rs 471.70 and Rs 457.70. 

On Thursday, as per the daily Fibonacci chart, MCX Natural Gas futures are likely to seek support around Rs 488.50 - Rs 479 - Rs 465, while on the upside the energy-based commodity could face resistance around Rs 514.50 - Rs 524 - Rs 538.