Crude oil prices saw a significant rally last week, with both Brent crude oil futures and MCX crude oil futures showing positive movements. Brent crude oil futures on the ICE appreciated by 1.7% to reach $74.2 per barrel, while MCX crude oil futures increased by 1.6% to hit ₹6,035 per barrel.
Looking at the technical analysis, Brent crude oil futures have been consolidating in a triangle pattern with a base at $70.50. The recent price action saw a breakout above the slope of the triangle, indicating a potential rally ahead. The next resistance levels for Brent crude futures are at $74.30, $76, and $80, while supports can be found at $72 and $70.50.
On the other hand, MCX crude oil futures bounced off ₹5,880 and found support at the confluence of the 20 and 50-day moving averages. The current price action suggests a possible rally towards ₹6,500 and ₹7,000, with resistances at ₹6,100. Supports for MCX crude oil futures are at ₹5,850, ₹5,680, and a key support at ₹5,500.
For traders looking to make a move, a long position on crude oil futures can be considered at ₹6,035 with a stop-loss at ₹5,800. As the price hits ₹6,300, the stop-loss can be revised to ₹6,180, and further tightened to ₹6,300 at ₹6,400. The target price for this trade is ₹6,500.
In conclusion, the recent rally in crude oil prices is indicative of a potential upward momentum, providing trading opportunities for investors in the commodity market.
