MCX Crude Oil likely to move in a range of 2502-2638
Commodity Online | May 26 2020
UPDATED 09:50:58 IST

NCDEX Chana under long liquidation; Resistance seen at 5254

MCX Cotton under fresh selling; Support seen at 20030

NCDEX Jeera under long liquidation; Resistance seen at 14210

NCDEX Turmeric under long liquidation; Support seen at 5686

NCDEX Mustard Seed under long liquidation; Resistance seen at 6183

Technically Crude Oil market is under short covering as market has witnessed drop in open interest by 4.01% to settled at 3084 while prices up 54 rupees.

Now MCX Crude Oil is getting support at 2539 and below same could see a test of 2502 levels, and resistance is now likely to be seen at 2607, a move above could see prices testing 2638.

Crude Oil yesterday settled up by 2.14% at 2577 as more countries continued to gradually ease coronavirus lockdown restrictions, boosting the demand outlook for the fuel.

Oil prices have risen sharply in recent weeks and are still on track for a fourth weekly gain after the depths plumbed in April when U.S. crude fell below zero.

However, markets were disappointed at China’s decision not to set an economic growth target this year, as the National People’s Congress (NPC) kicked off a week-long meeting. Rising tensions between the U.S. and China over Beijing’s plan to implement national security legislation in Hong Kong also hit commodities and other markets.

U.S. President Donald Trump warned of a strong reaction over the attempt to assert more control over the former British colony. Gasoline demand is returning, with traffic congestion in some of the world’s capitals recovering to year-earlier levels after the lifting of coronavirus restrictions.

China's crude oil imports are expected to increase by around 2% in 2020 amid lower prices, while apparent crude oil consumption is seen rising by 1-2%. U.S. crude stocks fell while gasoline and distillate inventories rose, the Energy Information Administration said. Crude inventories fell by 5 million barrels in the week to May 15 to 526.5 million barrels, compared with expectations for a 1.2 million-barrel rise.

Trading Ideas:
--Crude Oil trading range for the day is 2502-2638.
--Crude Oil prices edged higher, as more countries continued to gradually ease coronavirus lockdown restrictions, boosting the demand outlook for the fuel.
--However, markets were disappointed at China’s decision not to set an economic growth target this year.
--Gasoline demand is returning, with traffic congestion in some of the world’s capitals recovering to year-earlier levels after the lifting of coronavirus restrictions.

Courtesy: Kedia Commodities

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Coconut Oil 0.1 18900.00
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Sugar 197 3282.00

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