MCX Crude Oil under long liquidation; Support seen at 3841

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MCX under short covering; Support seen at 37790

Technically market is under long liquidation as market has witnessed drop in by 15.08% to settled at 9643 while prices down 123 rupees.

Now MCX Crude is getting support at 3841 and below same could see a test of 3767 levels, and resistance is now likely to be seen at 4009, a move above could see prices testing 4103.

Crude Oil on MCX settled down 3.05% at 3914 on disappointing economic data from and and a rise in U.S. crude inventories, partly erasing the previous session’s sharp gains after the said it would delay tariffs on some Chinese products.

China reported a raft of unexpectedly weak data for July, including a surprise drop in industrial output growth to a more than 17-year low, underlining widening economic cracks as the trade war with the United States intensifies. The global slowdown amplified by tariff conflicts and uncertainty over Brexit also shrank European economies. Data from industry group the American Institute (API) showed U.S. crude stocks unexpectedly rose last week.

Crude inventories increased by 3.7 million barrels to 443 million, compared with expectations for a decrease of 2.8 million barrels, the API said. The U.S. Trade Representative delayed imposing a 10% import tariff on laptops, cell phones, video game consoles and some other products made in China that had been scheduled to start next month.

China’s commerce ministry said in a statement that U.S. and Chinese trade officials spoke on the phone and agreed to talk again within two weeks. U.S. President Donald Trump said earlier this month that he would impose a 10% tariff on $300 billion of Chinese goods by Sept. 1 as China did not buy more American agricultural products as promised.

Trading Ideas:
–Crude range for the day is 3767-4103.
–Crude Oil dropped on disappointing economic data from China and Europe and a rise in U.S. crude inventories.
–Meanwhile, a second week of unexpected rises in U.S. crude inventories is adding to the pressure.
–U.S. crude stocks grew by 1.6 million barrels last week, compared with expectations for a drop of 2.8 million barrels, the (EIA) said.

Courtesy: Kedia Commodities

Source: Commodityonline.com