Crude oil, which saw a rally early last week, turned the trend and fell, leading to a weekly loss. Brent crude oil futures on the Intercontinental Exchange (ICE) ($65.50/barrel) was down 2.9 per cent. Crude oil futures on the MCX (₹5,447/barrel) lost 3.7 per cent.
Brent futures ($65.50)
Brent crude oil futures attempted to surpass the resistance at $69. However, the bears gained considerable control and dragged the price. While the price band of $65-65.50 is a support, given the current price action, it might be invalidated soon.
A breach of $65 can lead to a decline to $62, a support. Subsequent support is at $58.50.
In case the contract rebounds from the current level, it might retest $69. Nevertheless, only a clear breakout of $69 can result in a sustainable upswing. Resistance above $69 is at $70.70 and $75.
MCX-Crude oil (₹5,447)
Crude oil futures (September) rose to mark a four-week high of ₹5,825 on Tuesday. But then it lost momentum and the sellers took over, leading to a decline.
While the price has now slipped below both 21- and 50-day moving averages, there is an important support ahead of ₹5,400. If this level is breached, the sell-off can intensify, possibly resulting in a fall to ₹5,000.
On the other hand, if crude oil futures bounces off the base at ₹5,400, it can retest the prior high of ₹5,825. A breach of this can lift the contract to ₹6,000.
Trade strategy: Retain the long we suggested at ₹5,570 as there is support ahead. Maintain the stop-loss at ₹5,370. Exit at ₹6,000.
But if the aforementioned stop-loss is hit, initiate a fresh short trade with stop-loss at ₹5,600 for a target of ₹5,000.
Published on September 6, 2025
