Bias turns negative for MCX Crude Oil; Natural Gas futures may consolidate

The MCX Crude Oil futures may test Rs 7,540-odd level this week; while on the upside MCX Natural Gas May futures are likely to face resistance around Rs 590.

Crude Oil

Bias: Negative

Last close: 7,782 

Support: Rs 7,540

Resistance: Rs 8,100

Despite the sharp volatility, the MCX Crude Oil May futures seem trapped in the trading range of Rs 7,500 to Rs 8,500 as indicated by the Bollinger Bands on the daily charts. 

The price-to-moving average action and the MACD has turned slightly negative indicating the possibility of downward pressure on the commodity in the near term. Crude Oil prices are currently trading below its 20-DMA and 50-DMA placed at Rs 7,975 and Rs 8,026, respectively.

As long as price remain below the key moving averages, Crude Oil futures can decline towards