Oil prices rose for the third consecutive week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($65.90/barrel) was up 2.7 per cent whereas crude oil futures in the domestic market (₹5,630/barrel) gained 3.3 per cent. Below is the outlook and trade recommendation.
Brent futures ($65.90)
Brent crude oil futures crossed the minor hurdle at $65. The price action shows that the contract has developed some bullish inclination in the recent weeks and so, there is a good chance for the extension of the upswing.
From the current level, the contract can rise to $69 and $71, notable resistance levels. There is a trendline resistance at $71 and so we might see a correction after Brent crude oil futures reaches this level.
That said, if the contract declines from the current level of about $66, it can find support at $63.50 and $62.
MCX-Crude oil (₹5,630)
Crude oil futures (February) managed to close above ₹5,500 last week and it made a higher high, which are bullish signals. It can rally more from the current level, with the nearest notable support being ₹5,800. A breakout of this can lift the contract to ₹6,000.
The upswing can happen either from the current level or after the contract sees some moderation, potentially to ₹5,500.
That said, if the support at ₹5,500 is breached, crude oil futures can extend the decline to ₹5,350, a support where the 21-day moving averages coincides.
Nevertheless, the chart now shows a positive bias and we expect a rally from the current level.
Trade strategy: Buy crude oil futures (February) now at ₹5,630 and on a dip to ₹5,500. Place initial stop-loss at ₹5,350. When the contract touches ₹5,800, revise the stop-loss to ₹5,680. Book profits at ₹6,000.
Published on January 24, 2026
