Commodities Crude

Crude could rally a bit from here

Crude Oil has seen a great fall from its high last year and global crisis could be attached to this fall. A fight between oil producing countries had led to excess supply and over it now we will have Iran flowing its crude in the world by mid this year. Surely this is the best time for India as we import almost 75% of our oil requirements. But after the OPEC meeting this week, where they decided to hold oil supply, we could witness a relief rally on the WTI crude of almost 10-15% from here. But surely this would be considered only the relief rally and then we can expect crude to consolidate. As you all could notice in the chart, we have got a positive divergence with RSI which gives us a trade to buy. Secondly, crude was trading in the downside channel, but it gave a false breakout as it couldnt confirm three close below the same and we traded back on the channel which is positive. Thirdly, we have got a double bottom on the charts with that false breakouts. So overall, we could trade for a long targets for near time. Targets: $33 which is channel resistance as well as 50 day average above which we can get $38 which is 100 day average. Stop loss: $26

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