Crude oil price may go up to Rs 6500 per barrel in near future: Sumeet Bagdia

Speaking on the chart pattern of crude oil price, Sumeet Bagadia said, “Crude oil prices have been rising continuously since last few days, which indicates presence of bullish over the counter. Oil price is up by 23 per cent since 27th. Has risen higher. August 2021 and made a higher ₹5827 levels in the recent week. Overall, crude oil price has given a multi-year breakout on the monthly charts and has moved above the 2018 and 2014 highs, indicating a major breakout in the commodity and more bullish momentum in the near term.

The Choice Broking expert further added that on the weekly time frame, crude oil price is trading above the ‘Ichimoku Cloud’ formation and 50-EMA (Exponential Moving Average), which confirms a bullish trend in the near term.

“On the daily chart, the price has shifted above the previous swing high of . ₹increased by about 2.5 percent with a level of 5688 and a high of ₹5827 levels. Additionally, a momentum indicator RSI and Stochastic have suggested a positive crossover with supportive volume. Another indicator MACD has also indicated a positive crossover on the daily chart, says Sumeet Bagadiya of Choice Broking.

“We are expecting an uptrend in crude oil prices in the next one to two months to target the potential ₹6200 per barrel ₹6500 per barrel on MCX. However, on the downside, support may come ₹5400 per barrel ₹5500 levels,” concludes Sumeet Bagadiya.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.