One of the recent 'hot' news is that CRUDEOIL fell below $70 (currently at $68). While I expected that in the recently concluded rally, Crude oil would go near Rs 4000/- on MCX, it essentially fell short of it due to the exchange rate.
It has broken an important support of Rs 3450/- (on MCX). This suggests further weakness and down target could be at Rs 3150 initially.
What is more worrying is that the recent rise during the last few months was not strong enough to take it to the 50% retracement.
Would this fall in Crude oil bring the stock markets down? When Crude oil was rising, the fundamental analysts, were screaming that it is a sign of 'economic recovery' as demand for crude seem to have risen and hence stock markets were gaining. Now that Crude oil is falling will they talk of reverse logic ? Or will they find some other (convenient)reason for the rising US stock market????
Happy trading
CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.
www.investogyan.com
3 comments:
dear sir,
plz give ur technical view about gold and silver on daily basis becuase this will help bullion trader also.
Reducing oil prices will have positive impact on our Indian oil marketing companies like HPCL, BPCL and IOC.
Gold / Silver - immediate trend is weak .. but I expect support to Gold near 16900 and Silver near 26350 ..
Crude il fall, would benefit HPCL / BPCL and IOC .. in the longer run .. long term investors can accumulate.
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