MCX Crude oil August future View after yesterday’s crash

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2 weeks ago
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Insignia Consultants

New Delhi

Tuesday, July 20, 2021 TIME 12:40 PM IST                                     

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MCX Crude oil August future View after yesterday’s crash. (Current price Rs.5043)

MCX crude oil August future fell over seven percent yesterday (from Friday’s close) to a low of Rs.4945. Fears of reduced demand from new variants of coronavirus apart from plunge in US stock market is the reason. Technical breakdown and technical breakout will always happen when price moves in a single direction.

Technical View for MCX Crude oil August Future

VIEW

  • One hundred day moving average at Rs.4887.00 is the key short term support.
  • Fifty day moving average at Rs.5164.00 is the immediate resistance.
  • Crude oil can rise back to Rs.5164 and Rs.5429 (by next week) as long as it trades over Rs.4887.
  • Short term bearish view will be there only if crude oil trades below Rs.4887 for a few continuous trading sessions to Rs.4752 and Rs.4575. Crude oil will also crash if fifty day moving average of Rs.5164 is not broken.
  • Options strategy: I will prefer to buy MCX crude oil August future at current price and hedge the same with selling a put option with a strike price of Rs.4800.

Crude oil demand outlook for August month is the key for price. Summer vacation demand of crude oil in Eurozone, UK and USA will drive investment interest and price. Lockdown due to coronavirus will result in more sell to Rs.4575. Indian Rupee will also gain against the US dollar if Brent crude oil price plunges.

Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees  have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading.Website www.insigniaconsultants.in. Prepared by Chintan Karnani. Customer care, whatsapp/telegram 9311139549

Disclosure: Members, employees, directors, clients and all other people associated with “Insignia consultants” do trade in MCX metals and energies. They may or may not have positions on the trading strategies mentioned in this report. They may also have open positions in MCX metals and energies futures in trading strategies other than those mentioned in this report. A

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