Technical View on Crude Oil - Target - $ 56 to $ 58 , (CMP - 3640 / $ 54.35): Angel Broking

Views of Mr. Anuj Gupta (Head Technical Research - Commodities & Currencies, Angel Broking):

On daily prices chart of Crude oil, it is clearly seen that prices are trading in the northward direction from last couple of days. Few days back we have noticed that prices have breached the down trend line with substantial volumes and trading above it. Prices have formed many bullish candlestick patterns which indicate the bullish trend in the MCX Crude Oil prices. Prices are also forming "Higher Top and Higher Bottom" which is basically a sign of Bullish Trend.

As per moving average, prices are trading above its 5, 20, 50 and 100 Day EMA (Exponential Moving Average) which supports the bullish trend. The Trend of 14 Day RSI and MACD are suggesting bullish trend in the Crude Oil prices.

Price may take support at 3550 ($ 53) and then 3400 ($ 50) levels, while strong support may seen at 3200 ($ 47) levels. Resistance may observed at 3800 ($ 56.50) and then 3950 ($59) levels. Strong resistance may observed at 4100 ($ 62) levels".

Looking towards positive chart structure and indicators suggests optimism we are recommending to buy in crude oil.

- Positional Call - Buy MCX Crude Oil March between 3620 - 3650, SL - 3470, Target - 3890 (CMP - 3650)

Source : Equity Bulls

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