The price of Crude oil witnessed a sharp correction from the highs of Rs 4777 levels to register a low of Rs 4118 levels as on 24th June, 2011.
The Prices of crude oil have since then recovered from the lower levels. But, as outlined in the chart above, the price has been taking support at its ascending trendline on every corrective move from higher levels.
Moreover, the overall price pattern over the past few sessions of trade now seems to be taking shape of an Ascending triangle pattern with the resistance levels placed at the Rs 4440 levels.
Thus a sustained break above the 4440 levels will see the price of crude oil rally towards levels of Rs 4500 / Rs 4550 levels.
The price of crude oil is also sustaining above its key moving average clusters.
We recommend traders to buy 50% on a break above Rs 4440 levels and again on dips to Rs 4405-- Rs 4390 levels with a stop loss placed below Rs 4359 levels for upside targets mentioned above.
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