Crude Check: Direction unclear
Support levels remain crucial
Crude oil prices experienced a three-week rally but saw a significant drop last week. Brent crude oil futures on the Intercontinental Exchange (ICE) and domestic market crude oil futures both declined, losing 9.1% and 5.7% respectively. Brent crude futures opened with a large gap-down and failed to regain momentum despite finding some stability.
The price remained above a crucial support level of $84.75, where both 21- and 50-day moving averages intersect. If this support proves resilient, a recovery to $97 could be possible in the near term, potentially pushing the price up to $100. However, a decline below $84.75 may trigger a drop to $75. Crude oil futures opened the previous Monday with a gap-down, reaching a low of ₹7,464 on Tuesday before rebounding to ₹8,113.
Despite the recent sell-off, the futures remain above the ₹8,000 base and support level of ₹7,500, suggesting a potential rally to ₹9,000. Conversely, if the contract falls below ₹7,500, the outlook could turn bearish, leading to a decline to ₹7,000 and further to ₹6,500. As the upcoming trend remains uncertain, it is advised to refrain from trading.
Traders with a high risk tolerance may consider shorting crude oil futures if it breaks below ₹7,500, with a target price of ₹6,500 and stop-loss at ₹8,050.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
