Crude oil prices have been on the rise for the past four weeks, with Brent crude oil futures reaching $80.80 per barrel and the MCX crude oil futures at ₹6,720 per barrel. The Brent futures hit an intra-week high of $82.60 before settling at $80.80, signaling a positive trend. However, there is resistance at $82.50, with potential barriers at $90 and $92 if the contract continues to rise. On the downside, support levels are at $77.50 and $76, with a breach of $76 turning the trend bearish.
Meanwhile, the MCX crude oil futures opened the week with a gap-up and peaked at ₹6,857 before closing at ₹6,720. The uptrend remains intact, but a drop in Brent futures could weigh on domestic oil prices. Support levels for the domestic market are at ₹6,500, ₹6,300, and ₹6,200, with key levels at ₹6,000 and ₹5,850 if the trend weakens. Conversely, if the upward momentum continues, the contract could reach ₹7,000 or even ₹7,500 in the near term.
For traders, a buy strategy was suggested last week on a breakout above ₹6,650 with a stop-loss at ₹6,250. As the contract approaches ₹7,200, the stop-loss can be revised upwards to ₹6,900, with an exit target at ₹7,500.
In conclusion, the momentum in crude oil prices may slow down in the near term, but overall, the trend remains positive with potential for further upside if key resistance levels are breached. Traders should monitor developments in Brent crude oil prices to gauge the impact on domestic oil prices and adjust their strategies accordingly.
