For last 2 months WTI Crude Oil prices were consolidating in narrow range of $51-55. However, after breaking the range on lower side, prices saw sharp movement on lower side and corrected by more than 10% in March month. On lower side Crude Oil found support around $47.18 levels which is 61.8% Fibonacci retracement level of the entire rally ($43-$55) it saw from November 2016 to Feb 2017.
· Prices have almost touched its short term rising trend line support and broken above the last two weeks high of $49.62 suggesting a potential reversal from current levels.
· On MCX, prices gave a breakdown in the last week from its short term rising trend line but reversed in this week above the trend line resistance making it a false breakdown considering the strong support is still intact on the international chart.
· Prices have almost corrected till its 78.6% Fibonacci retracement level of 3072 and made a low of 3076 in the previous week. Last two weeks high is placed at 3245 level above which a strong rally is expected in the commodity that can take crude oil towards its next strong resistances placed around the recent top of 3780 and further around year 2015 top of 3989.
· Immediate strong support is placed at its recent bottom and its 78.6% Fibonacci retracement level of 3072 and next support is placed at its previous multiple swing lows placed near 2870 level below which bullish view in Crude Oil will be negated.
We recommend buying Crude Oil Apr above 3245 for the Targets of 3780 and 3990 with Stop Loss of 2870.
- Buy MCX Crude Oil Apr Above 3245 Targets 3780/3990 Stop Loss 2870
- Risk/Return Ratio: 1:2
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