Weekly Outlook on Crude Oil - 7 Jul 2023

Sachin Gupta Sachin Gupta Sachin Gupta 11th July 2023 - 03:08 pm
Listen icon

Crude oil prices inched up slightly on Friday but were on track for second straight weekly gains amid signs of tighter supply and improving demand. According to The Energy Information Administration, U.S. crude stocks drew more than expected on strong refining demand, while gasoline inventories posted a large draw after an increase in driving last week.

                                                                     Weekly Outlook on Crude oil - 7 July 2023                                  

The draw in U.S. inventories also comes after Saudi Arabia said it will maintain a 1 million barrels per day (bpd) supply cut until August-end, and potentially later. The production cut went into effect from the beginning of July. Russia also said it will cut its oil exports by 500,000 bpd in August.

However, weaker-than-expected economic readings from China raised concerns over whether the country will be able to drive a recovery in oil demand this year. On the other hand, fear of rising U.S. interest rates may keep the gains limited.

On the daily chart, WTI crude oil prices pulled up from the immediate support at $66 and settled above the $70 mark. Prices have also been sustained above 50 days Simple Moving Averages with positive crossover in the momentum indicator RSI. Another indicator, CCI, added a positive basis for the near term. On the downside, the prices are holding support around $66.50 levels, while on the upside, key resistance is at around $80/84 levels.

 

MCX Crude oil prices witnessed upside moves consecutively for the second week in a row. On a weekly timeframe, the price took support at the lower line of the Symmetrical Triangle pattern and reversed further. RSI indicated positive crossover and supported the up-move. However, the prices are still trading below 100-days EMA, which stood at around 6070 and indicates an immediate hurdle for the uptrend. If the price manages to sustain above the 6070 mark, then further upside moves can be seen till 6200 and 6350 levels.

Hence, traders are advised to follow the buy on dips strategy and book partial profit around 6050 levels, a rest position can hold with trail SL to cost and once the price sustains above 6070 on closing basis can add more position for the next target of 6200 in the coming weeks.                

Important Key Levels:

 

MCX CRUDE OIL (Rs.)

WTI CRUDE OIL  ($)

Support 1

5700

65

Support 2

5550

58

Resistance 1

6200

80

Resistance 2

6350

84

How do you rate this article?

Characters remaining (1500)

Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

FREE Trading & Demat Account
Resend OTP
Resend OTP
''
''
Please Enter OTP
By proceeding, you agree T&C*
Mobile No. belongs to

Commodities Related Articles

Weekly Outlook on Copper - 17 May 2024

by Sachin Gupta 17th May 2024

How Long Gold Price Sustain to Shine in India!

by Tanushree Jaiswal 8th May 2024

Weekly Outlook- Crude Oil

by Sachin Gupta 3rd May 2024

Weekly Outlook on Gold - 05 April 2024

by Sachin Gupta 5th Apr 2024

Want to Use 5paisa
Trading App?