Crude oil may dip to Rs 4920: Sharekhan

Sharekhan has come out with its report on Crude oil. According to the research firm, the oil is expected to fall towards the level of Rs 4920.

Crude oil: Under pressure

MCX crude oil has done a sharp pullback rally. It retraced nearly 78.6% of the previous fall. In terms of the wave structure, the oil has formed a five-wave rise in its recent rally and has done a multi-week distribution near the key Fibonacci level. The daily momentum indicator was showing a negative divergence near the overbought zone and has given a Sell signal from there. Thus, the oil has started tumbling down. Recently, it found support near the 40-daily exponential moving average and the daily lower Bollinger Band bounced. Thereon, however, it couldn’t sustain above the 20-daily moving average. Thus, the reversal can be tightened to 5185 on a closing basis. Overall, the oil can fall towards the level of Rs 4920.

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