Crude oil prices saw a notable rise last week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($66.50/barrel) gained 5.9 per cent. Whereas the crude oil futures on the MCX (₹5,534/barrel) was up 6.4 per cent.
Brent futures ($66.50)
The resistance at $66 was finally breached last week after several attempts in the preceding weeks. However, there is one more hurdle at $68 for us to classify this upswing to have overturned the trend bullish.
A breakout of $68 can trigger a rally to $70 and $75. A rally past $68 would also confirm an inverted head and shoulder pattern, though one wouldn’t call the pattern as defined by texts. Nevertheless, a move above $75 will add more momentum to the bulls.
The contract can find support at $64 and $62.
MCX-Crude oil (₹5,534)
Crude oil futures (Jun) rallied last week on the back of the support at ₹5,170. The upmove has gone past the resistance at ₹5,450, opening the door for further rally.
Notably, the breakout of ₹5,450 has confirmed an inverted head and shoulder pattern, indicating a bullish trend reversal. As per this chart set-up, crude oil futures can rise to ₹6,100.
Though MCX crude oil futures has confirmed an inverted head and shoulder pattern, the Brent crude oil futures is yet to do so. Hence, traders can take the breakout in the domestic market futures with a pinch of salt.
Nearest support levels from the current level of ₹5,534 are at ₹5,450 and ₹5,170. So long as ₹5,170 holds true, the bias will remain bullish.
Trade strategy: Buy crude oil futures (Jun) at ₹5,530. Target and stop-loss can be ₹6,100 and ₹5,250 respectively.
Published on June 7, 2025