Weekly Outlook on Crude Oil - 13 Jan 2023

Weekly Outlook on Crude Oil - 13 Jan 2023
Weekly Outlook on Crude Oil - 13 Jan 2023

by Sachin Gupta Last Updated: Jan 16, 2023 - 02:26 pm 3.8k Views

Crude oil prices traded flat on Friday but were on track with more than 4% gains for the week on solid signs of demand growth from the top importer China and expectations of a less aggressive interest rate rise in the US.

MCX crude oil has contributed a more than 3% gain while Brent oil jumped 6.7% for this week, followed by WTI crude oil with 6.2%, recouping most of last week's losses.  
 

 

Natural Gas- Weekly Report 6 Jan 2023

 

Dollar prices were dragged to a nine-month low after data showed U.S. inflation fell to its lowest since 2021 in December, supporting the oil market, as a weaker greenback tends to boost oil demand as it makes the commodity cheaper for buyers holding other currencies.  

According to the recent report from Morgan Stanley, the tight supply could support oil prices for the coming quarter. The bank said in a note on Wednesday," We see the oil market to be tight in Q3 & Q4 and Brent prices in the first quarter to remain range bound around $80-85 per barrel. It saw prices reaching $110 a barrel by the end of the year.

On the NYMEX, WTI crude oil prices recovered from last week's low and managed to trade above $75 with weekly gains of 6.2%. The price has taken support at a lower Bollinger Band formation and sustained above 21-days SMA on the daily chart. On a weekly scale, it is still trading within a prior week candle and finding a hurdle around $82. While the stochastic indicator has jumped to 56 levels from the oversold zone, that suggests further strength for the near term. On the downside, the price has support at $70 while, on the upside, it may find resistance around $86.

On the MCX exchange, crude oil prices recovered more than 300 points from the psychological support of Rs.6000 and managed to trade at 6350 levels. Overall, the price has been rising for the last four consecutive sessions with favorable volume activity but still trading below 50-days SMA. A momentum indicator RSI reading is at 49 marks with a positive crossover, which indicates that recovery moves to be continued for the coming days.

 

Hence, traders are advised to look for buying in dips in crude oil for the next one to two weeks. However, the upside could be limited as the overall structure is still looking weak. On the downside, the price has support at 6000 levels, while on the upside; the resistance comes at 6850 levels.

                                    

Important Key Levels:

 

MCX CRUDE OIL (Rs.)

MCX CRUDE OIL (Rs.)

Support 1

6000

70

Support 2

5830

65

Resistance 1

6850

86

Resistance 2

7000

93

How do you rate this blog?

or

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Mr. Sachin Gupta is a Senior Research Analyst at 5paisa, based in Mumbai. He has over 10 years of experience in Equity, Commodity research and strategies. 

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.

Open Free Demat Account

Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Bearer Cheque

Introduction A bearer cheque is an efficient and adaptable financial tool. It is a method of payment where the cheque is made out to the owner or bearer of the document. Bearer cheques enable the holder to cash or deposit the cheque without any requirement for identification or endorsement, in contrast to other cheques payable to a specific person or business.

  • Jun 06, 2023
Best Indicators for Intraday Trading

Introduction Intraday trading, also known as day trading, is a fast-paced trading strategy where traders aim to take advantage of short-term price fluctuations in financial markets. To succeed in this highly competitive arena, traders rely on various best indicators for intraday to make informed decisions and maximize their chances of profitability.

  • Jun 06, 2023
Nifty Outlook for 7 June 2023

Nifty started the day around 18600, but it witnessed selling pressure as the IT stocks corrected sharply and thus the benchmark index traded under pressure. However, the index recovered the losses from the lows towards the end and closed around the opening levels with a negligible loss.

  • Jun 06, 2023

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number