Crude Oil - Dec 22, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices extended losses this Tuesday morning and early afternoon trade in Asia as the rapid spread of a new strain of the novel coronavirus in the U.K. prompted several countries to close their borders to British travellers and freight.

Oil prices were also pulled lower as Dollar Index extended gains this early Tuesday afternoon trade in Asia supported by the safe appeal of the currency.

Looking ahead, markets could look to cues from U.S. GDP data due today and inventory data from American petroleum institute tonight and EIA data due tomorrow.

Technically, WTI Crude Oil took a support near 21-Daily Moving Average at $46.26 level while prices are trading below the important hurdle of $48.00 levels indicating sideways momentum for the rest of the session within the support and resistance levels.

Domestic crude was trading weak this Tuesday morning and early afternoon trade in Asia, tracking weak overseas prices.

Technically, MCX Crude December is on a negative note. However above 3420 levels will continue to hold bullish momentum up to 3500-3530 levels. Support is at 3455-3420 levels.

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Source : Equity Bulls

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