Last week, after taking support of the middle band of the rising trend channel C-C1, MCX Crude price rallied sharply to close the week up by more than 2.5%. The price is now trading at a 5-year high level on MCX. However, the price is currently very close to the upper band of the channel C-C1, hence a corrective downside move could be possible in the short-term. A test of channel resistance line C1 near Rs.5700-5725 levels could be used as a selling opportunity for the target of support near the middle band at Rs.5520 level.
The 14-period RSI is close to the resistance line, and is currently in overbought territory which could lead to a short-term correction.
A short-term sell-off could be expected for the target of Rs.5520 level.