Commodity Talk: Consolidate MCX crude oil in a Bearish triangle pattern. Do you have to buy, sell or hold?

Stuck feelings were lifted for fear of oversupply that was further aggravated.

The futures of crude oil in October traded on RS 5,669 per BBL, rises by RS 37 or 0.66% on the MCX.

In international markets, US WTI crude oil fluctuated around $ 63.65 and won $ 0.24 or 0.38%, while Brent Crude traded around $ 67.90, an increase of $ 0.27 or 0.40%.

In commentary on current trends, said Naveen Mathur, director – raw materials and currencies at Anand Rathi shares and stock brokers, said that geopolitical tensions continue to dominate the sentiment of crude oil.

“The drone strikes of Ukraine were aimed at Russian refineries, pumping stations and the Samara Bending -facility, which threatens export flows. Meanwhile, renewed Trump calls for Europe to stop Russian oil purchases and the EU has prepared new sanctions on the target of Russian Olie by Third Care by the Dish Oil -Bero -Oil -Trade -Trade -Trade -Trade -Trade -Trade -Trade -handed -handed -handed “said Mathur.

Last week Crude finished almost 1% lower, with WTI settled at $ 62.68, now that was almost $ 63 per BBL floating. The prices were weighed by robust delivery, rising OPEC output and steady Russian exports, which compensated for support from the 25 BPS rate reduction of the FED. Weak American jobs and housing data, reversal of refinery maintenance and a surprising construction of 4 million Varrues in Distillates put under pressure on the demand prospects. Risks of the strikes of Ukrainian and the tightening of EU sanctions on Russia.

Technical display

A downward-slist triangular pattern forms in MCX crude oil contracts, with resistance characterized by a falling trendline from July Highs, Mathur said. The price is currently being traded in the vicinity of support levels around RS 5,579-5,429, with resistance near RS 5,729.

“The Bollinger tires show moderate contraction, which points to potential for a price drop probably after the triangular pattern. The MacD histogram shows a mix of weakening Bullish and Bearish Momentum, without strong directional bias,” said the Anand Rathi analyst.

MCX Crude Oil -Handels Strategy

Mathur noted that MCX crude oil consolidates in a bearish triangle pattern. An outbreak above the falling trendline near RS 5.729 could indicate a bullish reversal, while a malfunction under the support near RS 5.429 could renew the downward trend.

Momentum indicators and bulging tires suggest low volatility, but potentially for a directional movement in the short term as the Triangle Apex approaches. The most important support levels are at RS 5,429-5,377, while resistance is on RS 5,729-5,850.

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(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)