Crude Oil (28.8.2014) traded lower in last few session & reach to major support area.
Now crude is trading around $94.30 & as we can see on chart, as crude bounced back from $92.50 mark & this area providing support since may 2013. We have witness consecutive 3 bounce from here & there could be 4th one now. Apart from this, crude is getting support from 161.8% February correction .In last few days we also observe a bullish construction on candlestick pattern. A Lower trendline support & positive divergence proving more strength probably.
On fundamental side, production sites are due for yearly maintenance from mid of September which could dent the inventory levels.
Based on above studies, Crude Oil has major possibility to move upside for targets around $96.60 & then $98.50 while a day close below $91.30 will force us to reanalyze the charts.
S2 S1 cmp R1 R2
Mcx level – 5520 – 5640 – (5750) – 5890 – 5960
Note – Above technical analysis is not a buy/sell recommendation. For recommendations Contact Us