Crude Check: Uptrend stays strong

Oil prices continued to rise last week, with Brent crude oil futures on the Intercontinental Exchange (ICE) surging 6.2% and reaching a four-week high of $116.72 per barrel. This marks the highest close since early June 2022. Domestic crude oil (Nov) futures also posted a 4.3% gain last week, continuing a streak of four consecutive weekly gains.

Analysts believe the bullish momentum favors investors, and prices are expected to climb further in the upcoming sessions. Initially, Brent crude futures hovered flat until Wednesday before experiencing a strong rally in the last two sessions. Currently trading at $116.72, they have reached a trendline resistance level around $117.

This could potentially cause a short-term price dip, possibly down to $112. However, a drop below this support level seems unlikely. A rebound from either the present level or after a temporary dip to $112 could propel Brent crude futures to $120 soon. A breakout of this resistance could propel prices even higher, towards the $130 mark.

Conversely, if the contract falls below $112, the bears could push the price down to the $106-108 range, where it may encounter trendline support. A break below this trendline could turn the near-term outlook bearish, but such an event appears less probable at the moment. If Brent crude futures experience a minor correction, this could trigger a decline in domestic crude oil futures as well.

However, this dip is expected to be capped at ₹9,300. Support levels below ₹9,300 are at ₹9,000 and ₹8,500. As long as the support at ₹8,500 remains intact, the overall outlook remains positive. Should crude oil futures recover, they could reach ₹10,200 and potentially climb further to ₹10,500 in the near future. All comments must be in English and written as full sentences. The posts should be respectful and in line with the community guidelines.