The price of Crude oil has been trading within broad ranges of Rs 4075 to Rs 4300 levels over the past few trading sessions.
The key observation to be made is that the price of Crude oil appears
to be forming an Inverted head and shoulder price pattern on the intraday charts.
The Neckline resistance for the said pattern is placed at the Rs 4300 levels. Upside targets of Rs 4340 / Rs 4375 levels can be seen in this counter once the price breaks above the neckline resistance level mentioned above.
Some of the other positive technical factors are that the price of crude oil has also closed above its key moving average clusters on the intraday charts and the MACD indicator is also trading in bullish mode.
We recommend traders to buy on a break above Rs 4300 levels for the above mentioned upside
targets. A stop loss of Rs 4267 levels should be maintained on all long positions taken above
Rs 4300 levels.
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