Crude oil fell more than 60% in the last 6 months and is now consolidating in a tight range, probably looking for another big move.
Crude is trading around $50.80 and as we can see on charts, it is trapped in a range that's producing a symmetrical triangle pattern. Generally these patterns appear before a big move and provide either side a breakout in the 50%-75% range. Candlestick pattern are neutral with RSI. Decreasing volume from the last few weeks hint for the same.
On the fundamental side, upcoming crude inventory will decide future direction while Greece uncertainty and dollar strength will keep pressure on oil prices.
Based on above studies, we will prefer to go with the breakout of current symmetrical triangle with a $58 mark on the upside and $43 on downside act as profit booking levels.
MCX -> S2(2810) S1(3020) cmp(3130) R1(3300) R2(3560)
Note - Above technical analysis is not a buy/sell recommendation.
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