MCX Crude OIl Updates- Slowdown Demand From US and China Lead Crude Oil To face a Choppy session

MCX Crude oil Contract Faced a sell off yesterday at 4512 with -2.62 los due to weaken demand from U.S. and China who are the world’s largest oil consumers. Payroll processing firm ADP said U.S. non-farm payrolls rose just 38K in May, on a seasonally adjusted basis, after increasing by a downwardly revised 177K the previous month. Analysts had expected non-farm payrolls to rise by 178K last month. Meanwhile, official data showed that manufacturing activity in China slowed in May, marking its second consecutive monthly decline, while the HSBC China PMI for May fell to a 10-month low of 51.6 from 51.8 in April.

Now technically Crude futures is trading in the range as RSI for 14days is currently indicating at 46.18, where as 50DMA is at 4774 and crude is trading below the same and getting support at 4461 and below could see a test of 4409 level, And resistance is now likely to be seen at 4606, a move above could see prices testing 4699.

Crude futures trading range is 4409-4699.

Intraday traders can buy MCX Crude June contract near 4430 with the stop loss of 4390 and can wait for the targets of 4490 and 4520.


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