Commodity Market Forecast - Mr.Vivek Gupta, Director Research, CapitalVia Global Research Limited
Crude oil fell on Friday, pressured by ample supply, concerns about demand growth and a stronger U.S. dollar. Traders pinned much of the fall on the U.S. dollar's rally to its highest in more than four years against a basket of currencies. The dollar drew support from a fall in U.S. jobless claims and Federal Reserve interest rate forecasts that were higher than those predicted in June. We expect crude oil prices to trade on sideways as enough supplies could keep prices under pressure and stronger US economy could push prices higher.
For the coming week 5250/5100 will act as major supports levels whereas 5815/5960 will act as major resistance in MCX Crude oil October futures. For the next week, trader can use sell on higher level strategy, if MCX Crude October future sustain below 5550 levels then it could test the levels 5420/5250.