Brent crude oil futures on the Intercontinental Exchange (ICE) ($60.20/barrel) was down 0.4 per cent whereas crude oil futures in the domestic market (₹5,182/barrel) rose 1.5 per cent. Here is our outlook and trade recommendation.
Brent futures ($60.20)
Brent crude oil futures opened last week on the front foot and rallied. But then, it lost momentum after facing resistance at $62.20. The trendline also coincided at this level, making it a strong barrier to break.
Friday’s decline shows that the bears are regaining traction. However, there are support levels ahead at $60 and $58.50. The latter has been holding well since April.
Given the aforementioned factors, there is a good chance for the contract to broadly remain within $58.50 and $63 in the near future.
MCX-Crude oil (₹5,182)
Crude oil futures (January) was moving up until Thursday albeit along with a drop in momentum. On Friday though, there was a sharp drop in price.
The contract faced a resistance at ₹5,300. Also, the 50-day moving average, at ₹5,275, acted as a hurdle. The price action since November shows that crude oil futures has been forming lower highs and lower lows. From the current level, the likelihood of a decline is high.
That said, there is a support ahead at ₹5,000, which can arrest the decline. Just below this is another support at ₹4,800.
Overall, the room for a decline looks limited whereas at the same time, the likelihood of a rally is low.
Only a clear breach of ₹4,800 or ₹5,470 can lead to a sustainable trend.
Trade strategy: Traders with higher risk appetite can short crude oil futures (January) at ₹5,230. Target and stop-loss can be ₹5,000 and ₹5,330 respectively.
Published on December 27, 2025
