Crude Oil has been trading on record high levels on MCX
majorly due to decline in INR and overall sentiments have been positive for Crude
Oil.
On Wednesday evening, we saw Crude making records high of
4926 on MCX and traders reacted to the positive sentiments in the market.
EIA numbers released last evening acted as a catalyst for
Crude Oil prices and this pushed the prices to new levels. Read more here
With Sanctions on Iran and supply concerns around the globe,
Investors are overall bullish in Crude and it is expected to touch $80 per
barrels
Recent release on Crude Oil in Economic times stated “Sanctions
on Iran will remove significant volumes of Crude from the market” and this
affected the prices
Looking at the demand and supply concerns and with decline
in India rupee, we might see Crude Oil around 5100 levels on MCX.
For Intraday or positional trades, it is advisable to buy on
any dips and make profits.
What should you do if you are holding a short position in Crude?
On every call or tips, a smart advisers does give a stop
loss and most traders / investors who believe in holding position get stuck. I
always advise not to trade against the sentiments.
If you are holding a short position of current contract, I
would advise you to square-off or exit your position and do a fresh trade to
cover losses.
I expect Crude Oil prices to move down to 4926 in morning session.
We might see profit booking and this could move the prices towards downside for
some time. Overall, trend is positive.
Intraday – Buy at 4930 with target of 4955 and stop loss of
4910. Positional target of 4985
Natural Gas Forecast
As an investor, I would love trading in this commodity right
now as it is range bound for quite some time and unable to break its resistance
or support.
We saw Natural Gas prices rallying in evening session. As
mentioned yesterday (read here), this is great opportunity to sell.
Natural gas has been a sellers’ market for quite some time
and any upside is great opportunity to sell.
Markets have been quite volatile and great for sellers to
enter. With more supply and less demand and with less than warmer weather
conditions in US, Natural Gas prices will be seen hovering around resistance
again.
From Intraday I don’t see much movement and it is expected
to trade sideways. Prices will hover from 202 – 205 majorly due to decline in
Rupee.
I see short trade today, buy at 203 for target of 204.50 and
SL f 201.
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