Crude Oil Price Analysis
After a downtrend of over 1200 points in MCX Crude there has been a sharp short term reversal in daily chart. last three trading sessions has closed above the low made on three previous days.
Crude oil price closed the week on a positive note in the last trading session of the week. After making the low of 4691 crude bounced back strongly on 5th November and closed the week at 4861. Crude oil price has strong support area of 4840-4830 if on Monday trading session crude oil price manage to sustain this level of 4830 and above expect a sharp rally towards 4951 and there after to 5100.
Traders can take long positions in dips with stop loss of 4690 tgts 4950-5000 positional 5100. Short term indicators showing positive divergence. RSI is also showing momentum on the upside, stochastic are indicating a pullback rally coming. Volume has been strong for short covering in past week. Avoid making short positions since short term trend is up.
