The Brent crude oil futures on the Intercontinental Exchange (ICE) gained 1.1 per cent and ended the week at $73.9 per barrel. Similarly, the crude oil futures on the MCX was down 0.5 per cent and it closed the week at ₹5,956 a barrel.

Brent futures ($73.9)

The chart of Brent Crude futures shows that it has largely been fluctuating in the range of $73-76. But in the preceding week, the price rose. So, the recovery now seems to be blocked by the barrier at $76.

If the contract breaches the support at $73, the price can decline further to $71, a support. Subsequent support is at $68.50.

But if Brent futures surpass the barrier at $76, it can establish a fresh leg of uptrend. This can take the contract to $80, a notable barrier.

MCX-Crude oil (₹5,956)

The November crude oil futures rallied past ₹6,050 on Thursday. However, the rally could not sustain, leading to a drop on Friday.

That said, a recovery is still possible. Particularly if we consider that the contract is showing a positive bias. That is, it has been forming higher lows since September.

However, as it stands, the contract lacks the thrust to decisively break past the resistance at ₹6,100. Considering the recent price action, the price band of ₹6,000-6,100 is a resistance band.

If the crude oil futures surpass ₹6,100, it can appreciate to ₹6,450. But if it slips below the nearest potential support at ₹5,950, it can decline to ₹5,700, a trendline support.

Trade strategy: There are several variables in the equation which makes the projection of the next leg of trend difficult. Given the prevailing price action, our advice would be to stay out.

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