Crude oil prices experienced strong volatility in recent trading sessions, but the overall trend still suggests bullish momentum. With geopolitical tensions and strong buying interest influencing the market, analysts believe crude oil could continue its upward movement despite short-term corrections.
Last week, the price of crude oil also increased. Crude oil futures on the local market (₹8,943/barrel) increased 11.5%, while Brent crude oil futures on the Intercontinental Exchange (ICE) ($103.10/barrel) increased 11.3%.
Crude Oil Prices Surge Amid Market Volatility
After experiencing significant volatility, Brent crude oil futures ended the week up 11.3%. The contract subsequently recovered the crucial $95 and $100 levels, indicating the presence of buyers, despite a price decline early last week.
There is a significant chance of another surge because the chart indicates that the uptrend is still in place. However, the price may moderate, perhaps to a support area of $95 to $100, before rising much higher.
🛢 Global Crude Oil Price Movement
- Brent Crude Price: $103.10 per barrel
- Weekly Gain: 11.3%
- Indian Crude Futures: ₹8,943 per barrel
- Weekly Increase: 11.5%
- Key Support Levels: $95–$100
- Market Sentiment: Strong buying interest
Potential Upside Targets for Brent Crude
Brent crude futures may soar to $120 in the near future once the upswing starts. Keep in mind that a significant barrier is the $120–124 pricing range.
The price of crude oil futures showed significant fluctuation in April as well. It surged to a new high of ₹10,177 on Monday. However, it lost the majority of its gains that same day.
Indian Crude Oil Futures Show High Volatility
Even though Tuesday’s decline persisted, it recovered from the ₹7,300 support level and kept rising for the remainder of the week.
There may be a price correction in the future. However, the support at ₹8,500 or ₹8,000 can stop the decline. The bulls will have the advantage as long as the latter basis is accurate.
📊 Key Technical Levels for Traders
- Major Resistance: $120–$124 Brent crude range
- Indian Crude Target: ₹10,300 per barrel
- Primary Support: ₹8,500
- Strong Support: ₹8,000
- Risk Level: Breakdown below ₹8,000 may push price toward ₹7,000
- Market Outlook: Bullish if supports hold
Crude Oil Trading Strategy
The contract might rise to ₹10,300 if the surge resumes. However, if the ₹8,000 support is broken, the decline may approach ₹7,000.
Trade strategy: Set a stop-loss at ₹7,850 and go long at ₹8,500. Adjust the stop-loss to ₹9,200 on a rally to ₹9,600. ₹10,300 in book profits. Traders who are risk averse can avoid trading.
Frequently Asked Questions
1. What caused the recent increase in the price of crude oil?
Prices increased due to strong buying demand and market instability, sustaining the general upward trend.
2. What are the crucial Brent crude support levels?
$95 to $100 per barrel is the main support range.
3. What is Brent crude’s potential upside target?
If the rise continues, analysts predict a possible climb toward $120–$124.
4. What are the Indian crude futures support levels?
₹8,500 and ₹8,000 per barrel are significant supports.
5. What is the recommended trading strategy?
With a stop-loss at ₹7,850 and a goal close to ₹10,300, traders can think about purchasing around ₹8,500.
Conclusion
Despite volatility, crude oil markets are still optimistic due to solid technical support and purchasing enthusiasm. Short-term corrections, though, could take place prior to the subsequent rebound. When engaging in the trend, traders should carefully control risk and keep a close eye on important support levels.
Disclaimer: This content is for informational purposes only and should not be considered financial or investment advice. Commodity trading involves risk, and traders should consult a financial advisor before making investment decisions.
