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.                                   Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. To read the full report click on the attachment

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