Bias positive for MCX Crude Oil, Natural Gas: Key levels to watch out

The MCX Crude Oil futures may seek support around the 50-DMA at Rs 7,716; while the bias for Natural Gas is likely to remain bullish as long as it sustains above Rs 525.

Crude Oil

Bias: Positive 

Resistance: Rs 8,060

Support: Rs 7,716

The MCX Crude Oil futures, so far, have witnessed an intra-week correction of 6.8 per cent. The commodity from a high of Rs 8,372 on Monday tanked to a low of Rs 7803 on Tuesday. 

As per the price-to-moving averages action, the commodity has closed marginally below its 20-DMA (Daily Moving Average) at Rs 7,924. The price-to-moving average action indicates a bullish bias, as the 20-DMA is currently above the 50-DMA (Rs 7,716). The 50-DMA is now likely to act as an immediate support. Whereas, on the upside, the Crude Oil can look to spurt to Rs 8,000-mark.

As per the weekly Fibonacci chart, the commodity has given a minor Buy signal for the week. Hence, the ideal strategy should be to look for buying opportunities on dips closer to the weekly key support levels - Rs 7,680 - 7,550 - 7,430. Also, the overall bias for the remainder of the month is likely to remain positive as long as the commodity trades abvove Rs 7,490-odd level.

In case of resumption of the upward rally, the MCX Crude Oil futures can attempt to test Rs 8,080 - 8,300 - 8,480 on the upside this week.

As per the daily Fibonacci chart, on Wednesday, Crude Oil prices are likely to seek support around Rs 7,690 - 7,635 - 7,575; whereas on the upside may face resistance around Rs 7,980 - 8,060 - 8,175.

Natural Gas

Bias: Positive

Support: Rs 525

Resistance: Rs 575

The MCX Natural Gas futures have witnessed sharp swings in the first two trading sessions of the week so far, with the commodity price spiralling to a high of Rs 615.20 and then taking a sharp dip to Rs 532.40 in the following trading session.

As per the weekly Fibonacci chart, the commodity has strong support around Rs 525-odd levels. As long as this level is held, the MCX Natural Gas futures can jump back towards Rs 575 to Rs 590 odd levels during the course of the week. However, in case, Rs 525 fails to hold, prices can slide to Rs 505 to Rs 490-odd levels.

Select key momentum oscillators like the 14-day RSI (Relative Strength Index) and the Stochastic remain in the overbought zone. The MACD (Moving Average Convergence and Divergence), however, is still fairly positive.

As per the daily charts, the commodity is likely to face resistance around Rs 578-odd levels. Whereas, a price correction could see the Natural Gas futures decline to Rs 470-odd levels which is were the 20-DMA (Daily Moving Average) exists for now.

On Wednesday, MCX Natural Gas futures are likely to seek support around Rs 534.80 - 524.25 - 509. On the upside, the commodity may face resistance around Rs 563.40 - 574 - 589.30.