MCX Crude February as seen in the weekly chart above has fell sharply lower, breaking the support levels, and finally closed sharply lower.
For the next week we expect Crude prices to find Resistance at 5210-5230 levels and then strong resistance is seen at 5310-5330 levels. Trading consistently above 5335 levels would continue the previous weeks rally initially towards 5410 levels, and then finally towards 5505 levels.
Support is now observed at 5030-5010 levels and further below strong support is seen at 4930-4910 levels.
Multiple closing below 4910 levels would indicate that a major top has been posted in the market and thereby new leg down can be expected initially towards 4740 levels, then 4660 and then finally towards the Major support at 4485 levels.
Trading levels for the week (16.01.12 To 20.01.12)
Trend: Down
S1- 5035 R1-5210
S2-4930 R2-5330
Recommendation:
Sell MCX Crude February between 5210-5230, SL-5345, Target -5050/4960
Nymex February Crude
Trading levels for the week (16.01.12 To 20.01.12)
Trend: Down
S1- $96.75 R1-$100
S2-$94.35 R2-$102.45
Courtesy: Angel Commodities
