Crude oil, after opening last week on the front foot, lost momentum and was largely trading sideways. Brent crude oil futures on the Intercontinental Exchange (ICE) ($67.50/barrel) was down by a marginal 0.3 per cent. Whereas crude oil futures on the MCX (₹5,654/barrel) gained 1.5 per cent.
Brent futures ($67.50)
Brent crude oil futures was largely held within $66.50 and $68.30. That said, there is a good chance for it to rally to $70.70 in the near term. As long as the contract remains above the base of $65-65.50, the bias will be positive.
If the contract surpasses $70.70, it can extend the rise to $75. On the other hand, if it slips below the support at $65, it can decline to $62, a support.
MCX-Crude oil (₹5,654)
Crude oil futures (September) rallied to mark a high of ₹5,709 last Monday. But then, there was no follow-through upswing. What followed was a sideways movement within the narrow ₹5,560-5,700 price band.
That said, the price remains above the 21- and 50-day moving averages. The contract can rise again this week. This uptick can take the contract above ₹5,700 and lift it further to ₹6,100. Resistance above ₹6,100 is at ₹6,300.
But if crude oil futures drops below ₹5,560, it can find support at ₹5,400. Only a breach of this can turn the short-term outlook bearish. Support below ₹5,400 is at ₹5,000.
Trade strategy: Last week, we recommended buying crude oil futures (September) at ₹5,570. Hold on to the trade and maintain the 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 30, 2025
