Key trading levels to watch out on MCX Crude Oil, Natural Gas futures

The MCX Natural Gas futures are likely to trade with a bullish bias for the remainder of the week as long as prices sustain above Rs 709.50.

oil sector
Rex Cano Mumbai
3 min read Last Updated : Jun 08 2022 | 9:11 AM IST
Crude Oil
Bias: Positive
Last close: Rs 9,181
Support: Rs 8,800
Resistance: Rs 9,400

The MCX Crude Oil futures have been trading with a positive bias since mid-May. The commodity has since then rallied over 13 per cent from levels of Rs 8,200. 

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However, the upmove has been very gradual with Crude Oil prices respecting the resistance around the higher-end of the Bollinger Band on the daily chart, and then retracing and finding support at its 20-DMA. 

The current scenario depicts a similar picture. In the last two trading sessions, Crude Oil futures seem to be facing resistance around the higher-end of the Bolllinger Band placed at Rs 9,400-odd level, and may now dip towards the 20-DMA placed at Rs 8,800-odd level.

As long as Oil prices sustain above the 20-DMA on a closing basis, the bias will continue to remain upbeat, with a possibility of prices rallying to Rs 9,600-level as indicated on the weekly chart.

Accordingly to the weekly Fibonacci chart, the MCX Crude Oil futures so far have gyrated within the near-term support and resistance levels, broadly indicating a trading range of Rs 9,100 to Rs 9,380. A break on the downside, can trigger a fall towards Rs 8,995 - 8,920 - 8,845; Whereas, a break on the upside can trigger a rally towards Rs 9,475 - 9,550 - 9,625.

As per the daily Fibonacci chart, on Wednesday, MCX Crude Oil futures are likely to trade in a range of Rs 9,035 to Rs 9,330; with support likely around Rs 9,130 - 9,090 - 9,060; whereas on the upside the commodity may face resistance around Rs 9,235 - 9,270 - 9,300.

Natural Gas
Bias: Positive
Last close: Rs 722.10
Support: Rs 709.50

The MCX Natural Gas futures has been trading with a bullish bias since the start of the calendar year 2022, and has rallied almost 140 per cent during the period. Since mid-February, the commodity has consistently found support around its 20-DMA on bouts of intermediate corrections.

The bias continues to remain bullish, as the commodity trades firmly above the short-term moving averages, and the price-to-moving average action also reamins favourable. 

Currently, Natural Gas futures are seen testing resistance around the higer-end of the Bollinger Band on the daily chart at Rs 737-odd level, above which the commodity could jump to Rs 747. In case, of an intermediate correction the commodity could dip towards its 20-DMA placed at Rs 660-odd level.

According to the weekly Fibonacci chart, Natural Gas futures have given a strong buy signal. The bias for the remainder of the week is likely to remain bullish as long as the commodity sustains above Rs 709.50-level. On the upside, the commodity could test the monthly Fibonacci resistance placed at Rs 736 - 763 - 790.

On the flip side, in case, support at Rs 709.50 breaks, the MCX Natural Gas futures can dip towards Rs 682.30 - where stronger support is expected. 

As per the daily Fibonacci chart, the MCX Natural Gas futures on Wednesday may trade in a range of Rs 705.70 to Rs 738.50; with support expected around Rs 716.30 - 712 - 708.80 and resistance likely around Rs 728 - 732.30 - 735.40.
 

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Topics :Crude Oilnatural gasCrude Oil Pricescommodity tradingTrading strategiestechnical analysisCommodity picksCommodity derivatives

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