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Crude Oil
Fuelled by waves - Crude Oil
CMP: ` 3574 (As on 02nd Dec, 2016) then the formation on monthly chart seems to be like an
incomplete ‘X’ wave. The third and final leg of ‘X’ wave
Buy on dips : ` 3490-3480 will initiate above $52 and there are fair possibilities for
prices to cross this mark. On crossing this hurdle at $52,
Target Price: ` 3760-3990 prices are likely to travel further northward in the range
of $64-$67 as per the Fibonacci retracement studies. On
Stop-Loss: < ` 3320 the news front, the indecision within OPEC and its tussle
with non-OPEC members over production cut forms
After a relentless downtrend seen in 2014 the crux of all dynamic activities on global fundamental
and 2015, Crude oil prices have found some level. This fact has engulfed all other factors including
support this year amid OPEC and non-OPEC US Dollar and inventories. Despite being discounted, a
members’ growing tussle for production cut. large chunk of the upside seems to be still remaining to
However, 2016 also started on a negative be achieved.
note with prices tumbling to $26 per barrel,
the lowest level in a decade. But after mid- We recommended buying in Crude Oil January 2017
February, things started to improve and what contract at Rs 3490-3480 for target in the range of
we saw was a consistent recovery since then Rs 3760-3990. Maintain stop loss below Rs 3320.
with a few spells of pullback seen in between.
7 ARIHANT CAPITAL ¡ DECEMBER 2016
$49-$52 range remained a very strong
resistance almost throughout the year and it
is only now, in the last month, that prices are
looking all set to take a yearly close above
this crucial range. If we see the technical chart
through wave patterns & Fibonacci studies
