Now as we can see on charts , crude continue trading in tight range & with this time consuming move all indicators becoming neutral since mid of may. This kind of trading generally end up with a panic move on either side & provide a long term direction. Apart from the current ,the parallel resistance & support will personal assistant important role. As far as we discuss about present trading level, selling will be our preference as it is associated with higher risk/reward ratio.
On fundamental side, long term US oil inventories still on higher levels while ongoing Greece concern & improving data from US will keep pressure on oil prices.
Based on above studies, we will prefer to stay on sell side as far as $63.20 mark is not broken with day closing. On lower side, $57 - 56 will could be good profit booking area.
MCX levels-> S2(3720) S1(3805) cmp (3900) R1(3954) R2(4023)
Note - Above is not a buy/ sell recommendation.
More articles @ www.mantracommodity.blogspot.in