Crude oil prices rebounded last week, snapping a three-week losing streak. Brent crude oil futures on the Intercontinental Exchange (ICE) ($65.70/barrel) and crude oil futures in the domestic market (₹5,427/barrel) surged 7.2 per cent and 7.7 per cent respectively.
Brent futures ($65.70)
Brent crude oil futures rallied and managed to close above the hurdle at $65 last week. However, it might be a little early to call it a bullish trend reversal.
A breakout of $67 can add more fuel to the uptrend, potentially leading to a rally to $71, a resistance. Subsequent resistance is $74. A breakout of this can turn the medium-term outlook positive, where the contract can rally to $80.
On the other hand, if the contract falls below $64, it can extend the downswing to $60.
MCX-Crude oil (₹5,427)
Crude oil futures (November) began last week on a weak note and marked a low of ₹4,944 on Monday. But then, it immediately reversed the trend, and the bulls gained considerable traction, leading to a rally throughout the week.
That said, there could be a pause here, possibly leading to some consolidation. Only a breakout of ₹5,550 can give a bullish outlook for the week. A breakout of ₹5,550 can take crude oil futures to ₹5,950-6,000 price band.
In case the contract falls from the current level, ₹5,300 can provide some support. But if this is breached, the price might decline to ₹4,750.
Trade strategy: Stay out for now. Buy crude oil futures (November) if it breaks out of ₹5,550. Place stop-loss at ₹5,350. When the contract rises to ₹5,700, revise the stop-loss to ₹5,500. On a rally to ₹5,800, alter the stop-loss to ₹5,700. Exit at ₹5,950.
Published on October 25, 2025