MCX Crude Oil may drop to Rs 8,050; Natural Gas likely to bounce back

The MCX Crude Oil futures seem on course to test the 100-DMA around Rs 8,050-level; Select momentum oscillators on Natural Gas have hit oversold territory, thus a pull-back rally can be expected.

Crude Oil

Bias: Corrective mode

Last close: Rs 8,555

Support: Rs 8,400

Downside Target: Rs 8,050

The MCX Crude Oil futures seem to be in a corrective mode, and currently testing support around the lower-end of the Bollinger Band on the daily charts. The bias has turned slightly negative with the commodity closing below its short-term (20-day) moving average for three consecutive trading sessions.

As per the daily chart, the MCX Crude Oil futures have near support at Rs 8,400-level. Sustained trade below the same can trigger a slide towards Rs 8,050-odd level - which is where the 100-DMA stands. The 200-DMA stands at