Crude oil prices appreciated over the last week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($67.70/barrel) was up 2.8 per cent and the crude oil futures on the MCX (₹5,572/barrel) gained 0.6 per cent.
Brent futures ($67.70)
Brent crude oil futures, which was flat in the first half of last week, inched up in the second half. The price action now shows a good base formation, at least for the short-term, between $65 and $65.50.
Thus, as it stands, the likelihood of a rally is high. While $69 can be the nearest barrier, Brent crude oil futures can surpass this level and touch $70.70. A breakout of this can open the door for a rally to $75.
That said, if the support at $65 is invalidated, the contract can fall to $62.
MCX-Crude oil (₹5,572)
The chart of crude oil futures (September) shows a base formation at ₹5,400. Since Wednesday, the contract has been moving up on the back of the support at ₹5,400.
As indicated by Brent crude oil futures, there could be an uptick in price in MCX crude oil futures too.
The immediate hurdle is at ₹5,750. But given the prevailing price action, crude oil futures can rally past ₹5,750 and hit ₹6,100, a resistance, in the short run. A breakout of ₹6,100 will open the door for an upswing to ₹6,300.
In case the contract falls and breaks the support at ₹5,400, it can trigger a fresh leg of downtrend, which can potentially drag crude oil futures to ₹5,000.
Trade strategy: Buy crude oil futures (September) at ₹5,570. Place stop-loss at ₹5,370. When the contract touches ₹5,800, revise the stop-loss to ₹5,600. Book profits at ₹6,000.
Published on August 23, 2025
