Crude Oil - Feb 5, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International oil prices extended gains this on Friday morning and early afternoon trade in Asia on signs of economic growth in the United States and a continued commitment by producers to hold back crude supply.

Markets were encouraged by stronger-than-expected orders for U.S. goods in December and slightly better claims data.

Additionally, if today's payroll numbers are upbeat we could witness a swift recovery of the U.S. economy.

Meanwhile, approval by lawmakers of President Joe Biden's proposed $1.9 trillion coronavirus aid plan could aid sentiments.

Chinese demand for crude oil is also helping support the market, as shown by industry tracking that reports two tankers of North Sea crude oil heading to China for March 22 and March 24.

Technically, WTI Crude Oil will continue its strong uptrend above $56.00 levels. Resistance is at $56.70-57.30 levels. Support is at $55.95-$55.10 levels.

Domestic oil prices are trading marginally higher this Friday morning and early afternoon trade, tracking the overseas markets.

Technically, MCX Crude Oil February is sustaining above 4100 levels indicating a bullish momentum up to 4160-4185 levels. Support is at 4080-4030 levels.

Strategy for the rest of the session is Buy MCX February contract on dips towards 4100-4090 with a stoploss at 4060 and a target at 4170.

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Source : Equity Bulls

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