Sell MCX Crude oil; target of Rs 6620: Dani Commodities

Dani Commodities' report on Crude oil

Crude oil futures extended losses in the Asia electronic session today hurt by strength in the US dollar ahead of the Fed meeting minutes. The U.S. dollar advanced against most key rivals Wednesday, with the move coming ahead of Federal Reserve meeting minutes that may shed more light about the timing of an expected reduction in monetary stimulus. The ICE dollar index, which measures the U.S. unit against six rivals, rose to 80.956 from 80.901 late Tuesday. NYMEX light sweet crude oil futures for October delivery are trading down 21 cents at USD 104.90 per barrel. Investors will also look at the minutes for any discussion about changes to the Fed’s guidance that it won’t raise short-term rates until the unemployment rate falls to 6.5 percent, as long as inflation remains tame. Following a relatively dovish policy statement by the Federal Reserve after its July 30-31 meeting, investors will look to see if that tone carries through in more-detailed minutes from that meeting. Also on the docket Wednesday is a report from the National Association of Realtors on U.S. sales of existing homes. MCX September crude oil futures may open today’s session near Rs 6670 levels with support near Rs 6650 and Rs 6610 levels. MCX CRUDE OIL
International: Major Support for WTI at USD100 Bullish above USD 100
Domestic: Sell at 6660, Stoploss 6690, Target 6620. 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.

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