Crude oil prices increased last week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($63.80/barrel) was up 2.2 per cent whereas crude oil futures in the domestic market (₹5,427/barrel) gained 1.9 per cent.
Brent futures ($63.80)
Brent crude oil futures rose last week. While it moved above the 21-day moving average, it is now hovering around the resistance at $64, where a trendline and 50-day moving average coincides.
In case the contract decisively breaks out of $64, it can rise to $66 soon. A breach of this can trigger a rally to $70.
On the other hand, if Brent crude oil futures slips from the current level, it can find support at $61.50. Subsequent support is the price band of $60-60.50.
MCX-Crude oil (₹5,427)
Crude oil futures (December) broke out of a trendline resistance at ₹5,350 last week. It also moved above both 21- and 50-day moving averages. While these are positive indications, there is a notable resistance at ₹5,500.
For crude oil futures to establish a fresh leg of rally, it ought to clearly break out of the barrier at ₹5,500. Once this occurs, the contract can appreciate to ₹5,750, a resistance.
But in case crude oil futures drops from the current level, it can find support at ₹5,300. The weekly outlook will remain positive as long as this level holds.
Support levels below ₹5,300 are at ₹5,150 and ₹5,000.
Trade strategy: Avoid initiating fresh positions at the current level. Go long on crude oil futures (December) only if it surpasses the barrier at ₹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 December 6, 2025