Friday, 21 February 2014


Technical Outlook: 

Trading in a Classical Channel Pattern, On Daily Charts There is Stiff Resistance around 103.50$. Since its a Channel top and There is Resistance on Daily Charts, (i.e. Horizontal Resistance on daily chart and Channel Patter Resistance both Coincide)  it would be feasible to take a Short Position in CRUDE OIL. Relative Strength Index looks overbought on 4 hourly charts and momentum Indicator is also Overbought. Its a confirmation for Selling. Hence We Recommend to Sell WTI CRUDE OIL till 103.50 (CMP: 102.80) keep an stop loss of 104.50 and Targets of 100 $. Risk and Reward Ratio is also favorable in taking short position.

For MCX CRUDE OIL According to International Markets We suggest Sell As after a bull run after a breakout above 6280 has seen no correction in the Rally. Hence We suggest short CRUDE OIL MCX with Stoploss of 6470 for Targets of 6320, Current Market Price 6413 (Closing of 20-Feb-2014)

If trades and Sustains above 104.50 $ Fresh buying may Resume, And Hence Stop loss of 104.50$ would be strongly recommended.

Economic Outlook:

Petroleum inventory data are little changed in the February 14 week with oil inventories up 1.0 million barrels to 362.3 million. Which Suggests Week Demand of Crude oil and Hence we may see some Correction in Prices of Crude oil.