Crude oil prices were mixed last week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($62.40/barrel) was down 0.3 per cent whereas crude oil futures in the domestic market (₹5,324/barrel) gained 2.4 per cent.
Brent futures ($62.40)
Brent crude oil futures has been gradually falling over the last month. However, in the last week, the contract was largely trading sideways. It was oscillating between $61.50 and $63.
At the current juncture, there is a lack of clarity about the next leg of trend as there are supports nearby at $61.50 and $60.50 and on the other hand, there are resistance levels at $63 and $64.
The path of the next leg of trend depends on whether $60.50 or $64 is breached first.
MCX-Crude oil (₹5,324)
Crude oil futures (December), which was flat until Wednesday last week, rose in the last two sessions. However, it did not rally past the barrier at ₹5,360, where the 50-day moving average and a trendline resistance coincides.
Just above ₹5,360 is another resistance at ₹5,500. Therefore, the outlook will turn positive only if the contract breaks out of ₹5,500.
At the same time, the nearest support for crude oil futures from the current level is at ₹5,150, which can arrest the decline. Subsequent support is at ₹5,000.
Overall, crude oil futures has key support levels and resistance levels nearby and so, the outlook remains uncertain at the moment.
Trade strategy: Avoid initiating fresh positions at the current level. Buy crude oil futures (December) only if it breaks out of ₹5,500. Place initial stop-loss at ₹5,360. When the contract rises to ₹5,650, revise the stop-loss to ₹5,550. Book profits at ₹5,750.
Published on November 29, 2025
