Monday, January 24, 2011

Crude may Rise on Short Covering

MCX Crude Feb contract last closed at 4099, down by 26 rupees against previous close of 4125. The contract opened down side flat at 4097 made an intraday high at 4111 and last traded at 4073 down by 26 rupees after touch an intraday low of 4053.

Crude future prices are likely to rise on short covering and could touch 4140-4180 levels within next few trading days.

Support for Crude is seen at 4040 and below it; prices can test 3975 while the resistance levels are seen at 4100 and 4150 respectively. 14 days RSI for MCX Crude Feb contract is at 45 levels, which shows that Crude prices are falling steadily.

Short term range for MCX Crude Feb contract is seen at 4000-4200. Positional traders can Buy MCX Crude Feb contract near 3950 keeping a stop loss of 3875 and can wait for the targets of 4050-4130.


Posted By Commodity MCX Tips