Technical outlook:
MCX Crude Oil futures technical chart has taken the formation of "Ascending broadening wedge" pattern in daily time frame. Previously few sessions ended up sideways in trend along with some corrections inside the channel. As per the technical aspects based on the current price action, the market is expected to continue on bearish trend. The continuation of the trend will be confirmed once the prices breaks below a key support holding at 3920. The negative rally could be testing all the way up to 3840 level in the upcoming sessions. An alternative scenario indicates that if the key support holds strong then the market might have a chance to retest the same and revise the trend to bullish once again. Such reversal could possibly test up to 4040 level. Key resistance holds at 4040.
Research Report Call:
Sell below 3920 target 3840 stop loss 3960; Buy above 3960 target 4040 stop loss 3920