Technical Comment For The Day: Crude Oil 25-Feb-2014

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mcx-crude-oilAfter reaching Rs 6345 per barrel on the lower side Crude oil futures on MCX again recovered to reach Rs 6400 per barrel. The prices have maintained a strong bullish wave, which has ride Crude to its five months highs. Breaking levels of Rs 6450 per barrel would mean that Crude oil will that be eyeing Rs 6600 per barrel, which are the September 2013 levels. However, a caution is advised in this commodity with the Bull Run now slowly reaching a overbought mark. The stochastic that are a momentum indicator are showing signs of getting overbought with % K at 80 region. Idea in Crude can be to sell on rallies, or if one is expecting to go long then wait for the breach of Rs 6450 on closing basis. Having said that a brief portion of profit booking is expected in the commodity.