As the economies world over are showing good results, the demand of crude oil world over is also increasing, which will help the prices to move in the positive zone. Hence, it is expected that bullishness can be seen in crude oil for next few weeks.
WEEKLY CHART
When we retrace from the all time high of crude oil (6341.9) to 1626 we see that prices are moving in the retracement range of 23.6% to 32.8%. All EMA’s (3, 8, 55 & 200) are making a sangam which shows that prices can move any side. As the retracement is not yet complete, is expected that prices will move upwards and will complete the retracement levels. It can be seen that MACD is also moving in positive zone which shows positive signals.RSI still moving in the range of 58-59 which can also become overbought which is a sign of bullishness. A long term channel can be seen which is expected to break upside if the prices break their 38.2% retracement level of 3412.6.
Daily chart
There is long term trend line on which prices are talking support. There is also a formation of triangle which is broken on the upside showing bullishness on daily charts too. Prices have started taking are taken support on the upper line of the triangle which shows bullishness. From here it is expected that this rally can go up by Rs 600 to the range of 3850-3900.MACD is moving in the positive zone and moving averages are also positive which shows bullishness on the charts. Prices have support at 3160/3069 and resistance at 3245 which has now converted to another short term support. From retracement of 3503 to 2879, it can be made interpretated that the next resistance is at 3450-3500.
Seeing the above charts it can be said that bullishness can be seen in crude oil till the level of 3850-3900, some corrections can be seen beyond the levels of 3400-3430
Have a Great Trading Day.
Chintan Gupta
Team Profit King Researcher
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