Crude oil prices saw a sharp decline over the past week. The Brent crude oil futures on the Intercontinental Exchange (ICE) lost 7.4 per cent and ended the week at $73.1 per barrel. Similarly, the crude oil futures on the MCX was down 7.7 per cent and it closed the week at ₹5,839 a barrel.

Brent futures ($73.1)

Brent Crude futures dropped through last week and marked a low of $72.5 on Friday before ending the session at $73.1. Although it slipped below $75, the contract has a series of supports ahead.

The nearest one is $72. Below that the price region between $68 and $70 appears to be a good demand zone. Only a breach of $68 will bring back the bear trend.

That said, the Brent crude futures do not have it easy. Above the immediate resistance at $75, there is a crucial barrier at $82. The contract should surpass this level to establish the next leg of the uptrend.

MCX-Crude oil (₹5,839)

The November crude oil futures fell below the key support at ₹6,000 to mark an intraweek low of ₹5,757 on Friday. By wrapping up the week at ₹5,839, it has managed to close above a trendline support at ₹5,760.

Below ₹5,760, there are notable support levels at ₹5,650 and ₹5,500. In case crude oil futures slip below ₹5,500, it can lead to another leg of downtrend. But until then, the bears are not expected to dominate.

Neither the bulls can take charge as there are barriers ahead. While the nearest resistance is at ₹6,000, only a clear breach of ₹6,400 can pave the way for the bulls to launch a new uptrend.

Trade strategy: The crude oil futures is stuck between key support and resistance levels. So, we suggest staying out for now.

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