CO:Crude oil may suffers profit booking at higher levels
AHMEDABAD (Commodity Online): MCX Crude oil Nov contract moved lower despite on supportive inventory and settle flat to down by 5 rupees at 4339 as pressure seen after release of data showing a slowdown in China’s economy and ahead of a change in regulations on commodities contract purchases.
Adding to downward pressure on oil futures was the announcement that Moody’s Investors Service had reduced Spain’s investment grade to A1 from AA2, with a negative outlook. On Oct 14 S&P’s downgraded Spain’s rating, following a Fitch Rating’s cut of Spain to its fourth highest investment grade on Oct 7. Moody's also put France on three month notice saying that "pressure from weaker debt metrics," could leave the country with a negative credit outlook and may even result in a downgrade.
Now technically Crude oil is trading in the range as RSI for 14days is currently indicating 57.74, where as 50DMA is at 4120 and crude is trading above the same and getting support at 4230 and below could see a test of 4165 level, And resistance is now likely to be seen at 4401, a move above could see prices testing 4445.
MCX Crude oil Nov contract trading range is 4165-4445.
Intraday traders can sell MCX Crude Nov contract near 4320 with the stop loss of 4380 and can wait for the targets of 4250 and 4210.
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