Raw oil prices crashed last week. Brent crude oil Futures on the Intercontinental Exchange (ICE) ($ 66.80/barrel) fell 13.3 percent and the futures of crude oil on the MCX (£ 5,601/barrel) deposited a considerable 12.5 percent.
Brent Futures ($ 66.80)
Brent crude oil Futures fell sharply on the back of the trend line resistance at $ 78. It is also 61.8 percent Fibonacci retracement level of the earlier downward trend $ 80, which forms a resistance band of $ 78-80.
That said, from the current level there is a support for $ 66. If this is violated, the downward trend can extend to $ 62 and possibly to $ 60. But if there is a recovery, the contract can be confronted with barriers at $ 69 and $ 71.
Given that Brent Raw Futures has witnessed high volatility in the last three weeks, there is a great chance of a short -term consolidation.
MCX-Crude Oil (£ 5,601)
Crude Olie -Futures (July) dropped as £ 6,500 as a strong resistance, so that a substantial decrease of 12.5 percent led last week.
From the current level there is a support at £ 5,500, which can further arrest on the downward movement. But if this level is removed by the bears, we will most likely see another leg from autumn to £ 5,150, a support. The subsequent support is £ 4,800.
In the event that futures of crude oil on the back of the support restores at £ 5,500, the resistance will experience at £ 5,770 and £ 6,000.
That said, since the contract has seen great prize movements in the last three weeks, there is a chance of a lateral movement, at least before the short term. This can be between £ 5,500 and £ 6,000.
Trade strategy: The next trend leg depends on which of £ 5,500 and £ 6,000 will be violated first. Until then, the participants can stay outside.
Published on June 28, 2025
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