Geojit Comm sees short-term crude at $123/bbl

Alex Mathew of Geojit Commodities said crude is looking very strong and has support at USD 119.6-118.63 per barrel. He told CNBC-TV18 that they are expecting a level of USD 123 per barrel in the short-term and minor resistance for crude at USD 120.55 per barrel.

Excerpts from CNBC-TV18’s exclusive interview with Alex Mathew:

Q: What kind of levels do you see henceforth in crude? We already have done USD 121/bbl or near about that.

A: Crude is actually looking very strong and has a very strong support at USD 119.6/bbl to USD 118.63/bbl. We are expecting a level of USD 123/bbl in the short-term and minor resistance for crude is USD 120.55/bbl. So, one can take long crude futures at around Rs 4,835/bbl levels with the stoploss of Rs 4,800/bbl. Our short-term target is Rs 4,925/bbl.

Q: We have seen good gains in gold as well because of strengthened crude prices from USD 845/oz in the last week. We have seen a trade above USD 875/oz at this point in time. Are more gains expected here as well?

A: Yes, gold is looking strong this time. A minor resistance is seen at USD 881.3/oz. If it breaks this and goes above this level, then we can see USD 885/oz to USD 889/oz in gold. So, one can take gold futures at around Rs 11,555/10gm with a stoploss below Rs 11,508/10gm. The short-term target can be Rs 11,646/10gm. We are not very bullish on gold but are expecting a sideways to positive trend in gold in coming days.