Crude Oil, Natural Gas: Check key trading strategy, target price

Crude Oil outlook

OPEC's spare capacity is keeping oil prices stable amid geopolitical uncertainties in Iran and Saudi Arabia. Brent crude is trading near $84 a barrel, within a narrow range since November. The recent deaths of Iranian leaders and the Saudi Crown Prince's postponed trip have not significantly impacted prices, thanks to OPEC's ample spare capacity. Despite ongoing conflicts and lower demand growth expectations, oil prices remain steady. OPEC and allies are withholding 2 million barrels a day, with potential extensions expected at their June 1 meeting.

Technically: On the daily timeframe, crude oil has broken down from its rising channel pattern, signalling bearishness. A negative crossover of the 21-day and 50-day EMAs indicates bearish sentiments. Upside resistance is at Rs 6,590 and Rs 6,660, while downside support is at Rs 6,415 and Rs 6,300.

Intraday trading strategy  

– Sell MCX JUNE Crude Oil futures at Rs 6,520 with a stop loss of Rs 6,590 and a price target of Rs 6,440

 

Natural Gas outlook

The European Union has adopted a gas and hydrogen market package allowing member states to ban Russian LNG shipments without new energy sanctions. The regulation, effective six months after publication, lets states limit capacity bidding at LNG terminals for Russian and Belarusian deliveries to protect security interests. This move supports the EU's goal of climate neutrality by 2050.

Technically: On the daily timeframe, natural gas is forming a higher high, higher low formation, indicating bullishness. The RSI is also showing higher highs and lows, supporting a bullish outlook. Upside resistance levels are around Rs 239 and Rs 245, while support levels are around Rs 227 and Rs 221.

Intraday trading strategy  

– Buy MCX JUNE Natural Gas futures at Rs 233 with a stop loss of Rs 227 and a price target of Rs 240

(Neha Qureshi is a senior manager, technical research analyst of commodities & currency. Views expressed are her own)