Crude Oil Update:  Crude oil futures prices are trading below Rs.4600/bbl with fall of more than 1.2 percent in MCX platform. We may expect prices to remain under pressure as optimism of Spain bailout fades. Saudi Arabia Oil minister comment on rising production quota is also expected to keep oil prices under pressure ahead of tomorrow’s meet.

Crude Oil Prices Pressured amid Worries on OPEC’s Increase in Production, Ease in Supply Concerns due to Iran Sanctions: Commodity markets remained under pressure in the European session. Although the decline of crude oil stabilized with front-month contract for WTI crude oil recovered after falling to a new 10-month low, the downside risks remained.

Comments from Saudi’s oil minister and  the exemption granted on Iran sanctions lessened concerns over oil shortage. In China, reduction in fuel prices last week would only have limited impacts on refiners. Current price levels of crude oil and softening in inflation have created favorable conditions for the country’s fuel price reform. As the OPEC meeting will be held this week, comments from members in the cartel might give some hints on the output decision. Saudi Arabian Oil Minister Ali al-Naimi said that “maybe” the OPEC needs to increase the output ceiling to more than 30M bpd. While he stressed later that by using “maybe”, he meant the ceiling can be raised or lowered, the market interpreted his comment as bearish to oil prices with analysts.

Nymex Crude Oil (CL): Technical Update: The break of 81.21 indicates that recent decline has resumed. Bias is back on the downside for 80 psychological first and then a test on 74.95 key supports next. On the upside, break of 87.03 resistances is needed to signal short term bottoming.

Otherwise, outlook will stay bearish even in case of recovery.In the bigger picture, price actions from 114.84 are developing into a three wave consolidation pattern. And, the third leg should have already started at 110.55. Deeper fall should eventually be seen to 74.95 low and possibly below. Though, we’d likely see strong support from 64.23 cluster level, 61.8% retracement of 33.20 61.8% retracement of 33.20 to 114.83 at 64.38 and bring another medium term rise. Hence we’ll look for reversal signal below 74.95.

Crude oil June MCX : Sustained trades above 4590 would lead the prices to gain towards 4650 levels CMp 4627


Free Recommendation (HIGH RISK) :

Buy Crude Oil MCX @ 4627-4633,T1: 4653,T2:4673,SL:4570 – @ 12.06.12,06:35 PM

Technical update on Crude oil July NYMEX:  This is the second time price gained sharply after testing trend line support at $81.10 levels. Technical tool like momentum indicator RSI-14 is witnessing positive divergence in daily price chart which is supporting  factor to rebound up to resistance levels $ 84.50/86.40(intraday resistance are seen at 83.40/84.50). Price might rebound towards higher side,factor to rebound up to resistance levels $ 84.50/86.40(intraday resistance are seen at 83.40/84.50). Price might rebound towards higher side to get strengthen to breach support level of $81.10 levels. On beak below the same might change short term scenario and lower side possible targets are see $74.00. Overall recommend to sell on higher levels for short term.

Free Recommendation (Update) :

Crude Call,Buy Given at 4627,High made:4648,only 5 point Short from our Target,Those who are Holding positions Hold with given SL below:4569,Advised to add another lot around 4596-4610 –

Free Recommendation (Update 2) :

Crude Call,Buy Given at 4627-33, Cmp:4655, Target1 Achieved,Book profit Rs. 3000+ –

@ 12.06.12,8:18 PM

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