After witnessing high volatility over the past week, oil prices have settled slightly low and calmed down. InterContinental Exchange (ICE)’s Brent crude futures ($64.80/barrel) fell 1.2%. Meanwhile, MCX’s crude oil futures (£5,302/barrel) lost just 0.2%.
Brent Futures ($64.80)
Brent Crude Futures saw the zigzag movement last week. In the first half, it fell to mark its first four-year low of $58.40. But then it quickly surged.
However, the contract did not exceed resistance at $66. As long as the contract is below this level, there is a bearish bias.
A resumption of a downtrend from the current level could drag the contract to $58 and perhaps lower it to $56.
On the other hand, if the contract breaks the barrier at $66, you can move to the price range of $69-70.70.
MCX-CRUDE OIL (£5,302)
Crude oil futures in April fell on Wednesday to mark a low of 4,798 pounds. However, there was a daytime recovery when the contract closed at £5,302. Therefore, the £5,000 price level is related as support.
However, the contract has resistance levels of £5,450 and £5,750. Also, wider biases are bearish.
So, once crude oil futures start falling again, we can retest £4,800. A violation of this would drag the contract to £4,700 and perhaps drag it to £4,300 if the Bears hold their strength.
The contract should not exceed the major resistance level of £5,750 to make Outlook positive. Until then, the Bears will have an advantage.
Trade Strategy: Traders can suspend crude oil futures (April) at £5,400 for short oil futures (April) at £5,550. A contract drops to £5,100 and tightens the stop loss to £5,350. Settle the long for £4,800. Risk aversion traders can leave this trade.
Released on April 12, 2025
