Crude Oil may weaken below Rs 6,340; key support for Natural Gas at Rs 333

On the downside, MCX Crude Oil January futures could slide to Rs 5,940 or even re-test the recent lows at Rs 5,850-level; Natural Gas seems on course to test Rs 290 level.

The MCX Crude Oil futures once back declined after facing resistance around the 50-WMA, which is now placed at Rs 6,660. On the downside, break and sustained trade below Rs 6,340 can trigger a sharper fall. The key weekly support for MCX Natural Gas futures stand at Rs 333.

Crude Oil

Bias: Negative

Last close: Rs 6,478

Target: Rs 5,940; Rs 5,850; Rs 4,920

Support: Rs 6,340

Resistance: Rs 6,660; Rs 6,850

On Tuesday, for the third time in the last seven trading sessions the MCX Crude Oil futures retraced after facing resistance around the 50-DMA (Daily Moving Average), indicating persistent selling pressure by bears at higher