Crude oil moving as per our last report
Holding Key Support Zone 4220-4250 in MCX and 61.50$-62$ in NYMEX. After a rally,little correction in price was expected.
Inventory data revealed little rise in crude oil storage but its still well below 5 year avg.Bullish bet of hedge funds is on rise in crude oil and changing geo-political scenario causing glut in supply.
Demand-Supply equation is decline towards demand as OPEC production cut is in news and it will definitely dent supply.
Shell production is not up to the mark and pipeline constrains are limiting growth in crude oil supply.
Technical analysis of crude oil
As per 4hr nymex and mcx chart (ref Above),price successfully hold key demand zone.
4320 mcx and 62.50$ nymex price are important to watch.Market is in buy trend and bullissh sentiments are still intact as long as price holds key support zone on closing basis.
Next rally may test 4370-4450 zone in mcx and 64$ in nymex.