Crude Oil
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Last
week, we clearly indicated that we will expect range bound trading with high
volatility. Our buy call has proven great and made a high of 3159 mark but
unable to sustain and crashed vertically again to 2953 and finally it settled
with a weekly loss of 1.03% at 3000 along with it closed below 21DEMA but
below 55DDEMA which is at 2980 and 3066 respectively.
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This
week, Crude oil has support at 2920---2860 and resistance at 3030---3200. Now
again we will expect range bound trading in Crude oil with high volatility.
Close below 2960 will take to 2920---2860 and then to 2780 mark in days to
come. Further panic seen only close below 2780 mark else it could test its
resistance level of 3030 again. Close above 3030 will take to 3090---3130 and
then to 3200 mark. Further upside rally seen only weekly close above 3200
level.
On Nymex division, Crude oil has support at $43.50---$42.00 and
resistance at $48—$49.50. MACD and RSI still give positive indication. On daily
chart, it looks like that buying in dip could be good opportunity in Crude oil
for this week.
Positional traders can wait for entry as traders are keeping eye
on Crude oil inventory along with Opec countries route. Nimble traders can buy
Crude oil in panic around 2920---2870 with stop loss of 2780 for the initial
target of 3030 and then to 3090---3130. Others can trade safely with levels
only and wait for confirmation.
Natural Gas
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Our
sell call in Natural gas proven great and made a low of 172.00. We
recommended selling around 184---188 mark. It made a high of 185.40 and
crashed vertically and finally settled with a weekly loss of 4.28% at 172.20
along with it closed below 21DEMA and 55DEMA which is at 179.30 and 179.20
respectively.
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This
week, Natural gas has support at 172 and resistance at 180---186. Two
consecutive close below 172 will see free fall in Natural gas till 167----163
and then to 155 mark in days to come else it could test its resistance level of
180----186 again. Further upside rally seen only weekly close above 186 mark.
Three consecutive closes + weekly close above 186 will see further upside rally
in Natural gas till 206---215+ mark. MACD and RSI is now at ‘40’ and
below ‘0’ line and this also indicates negativity on weekly chart. Upper side
seems limited in Natural gas and any sharp rise will be selling opportunity but
trade with levels only. Traders holding short in Natural gas can book part
profit and on rise again sell around 180 with stop loss of 186 for the initial
target of 167----163 and then to 155 mark. Others can trade with levels only
and wait for confirmation.
