Crude waiting for breakoutCrude (10.03.2015) fall more than 60% in last 6 months & now consolidating in tight range , probably looking for another big move.
Crude is trading around $50.80 & as we can see on charts it is trapped in a range & producing a symmetrical triangle pattern. Generally these patterns appear before a big move & provide a either side breakout in 50-75% length range. Candlestick pattern are neutral with RSI. Decreasing volume from last few weeks hint for the same.
On fundamental side, upcoming crude inventory will decide future direction while Greece uncertainty & dollar strength will keep pressure on oil prices.
Based on above studies, we will prefer to go with the breakout of current symmetrical triangle while $58 mark on upside & $43 on downside act as profit booking levels.
MCX -> S2(2810) S1(3020) cmp(3130) R1(3300) R2(3560)
Note - Above technical analysis is not a buy/sell recommendation.
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