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Crudeoil

As per the Weekly chart, Crudeoil Prices entered into overbought territory, hitting an RSI reading of 78.3, while still, the uptrend is intact should avoid sell but be-caution at this level. While as per the above chart, one of the technical patterns that look extremely attractive for Crudeoil has been the ICHIMOKU pattern. As seen on the charts, the ‘Chikou Span’ (a line based on closing prices trailed backward) has shown signs of coming out of the cloud pattern on the Weekly timeframe. The Kijun sen had acted as a strong support zone for the Crudeoil, this also indicates that the Crudeoil could continue to move up higher, and with this recent ICHIMOKU cloud breakout the pace of rally, as well as the participation levels, could increase in the Crudeoil. The importance of this pattern on the Weekly chart is that in many cases we have witnessed commodities go into a strong bull run for coming days and not some short-lived trends. Even on the short-term chart, a price volume breakout of a multi-week consolidation was considered extremely positive. Such breakouts have a tendency to change the range for the commodity even from a near-term view. VIEW: Crude oil prices are expected to maintain their bullish trend and continue upward to target $90.00 and $100.00. At the current time, the price is consolidating between $82.72 – $85.00 and waiting for further bullish pressure. Traders will continue waiting for the breakout and close outside of the range for now. While on MCX Crude technically looks to see some pullback to test 6150-6180 level which good level to buy if prices resume the main bullish trend then prices can test 6440 level which is initial resistance while levels like 6550 are easily achievable also please note that breaching this level will extend the bullish wave to reach 6590 levels.

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