Crude Check: Bulls gain strength

Oil prices surged last week. Brent crude oil futures on the Intercontinental Exchange increased by 4.9 percent, reaching $109.90 per barrel. Domestic crude oil futures rose 6.4 percent, hitting ₹9,394 per barrel. Brent crude futures continued their upward trend for the third consecutive week, nearing a resistance level of $110. A break above $110 may propel the contract to $120.

However, a decline from the current level could find support at $103 and $100. Crucial support lies between $103 and $100, forming a strong base. Brent crude futures surpassed their previous peak of ₹9,310 last week. A successful breakout above ₹9,000, followed by a rally, suggests strong momentum. The next resistance is projected at ₹10,200, with a subsequent barrier at ₹10,500.

Conversely, if November futures decline, they could seek support at ₹9,000 and ₹8,750. The immediate support base is at ₹8,350. As long as this level remains intact, the outlook remains positive. Previously, we recommended buying October futures at ₹8,881, which will expire on October 19. Following the exit from the October longs, traders should consider purchasing November contracts at ₹9,250. The target price is ₹10,200, with a stop-loss at ₹8,750.