Crude Oil - Signs of Fatigue? ?

It seems that the stock markets are not in a mood to stabilize. Today when everyone was expecting that the Nifty will take support at 3840 , it broke and fell almost 50 points below that level before recovering back to 3830 on close.On intraday charts, 3880 and 3950 are the key resistances while 3798 is the support.

CRUDE OIL fell yesterday by more than $5. On the MCX , Crude Oil contract closed just below 6000/-. There is strong resistance at 6300+ levels while the key support for Crude now is at 5800/-.



A break below 5800/- is likely to lead to further selling pressure. Retracement target itself is initially at 5200/-.

Also if you observe on the chart, there is negative divergence on the MACD and i expect that a break below Rs 5800 will 'confirm' this MACD divergence.

Investors who track Crude to get a direction on the Stock market may now get worried only and only if Crude breaks above Rs 6325/- on the MCX.

It seems that 'the price of crude' is now tired of going uphill and needs some rest ('correction')

Happy observing!

CA Rajiv D Khatlawala