Energy Market Outlook and Sector Updates: Nirmal Bang
Crude oil : Crude prices are seen taking resistance on the upside at the 3500 levels. The prices moved higher giving a new high of 3508, however closed mid-way at 3425, above the 9DMA. We can find Negative divergence on the chart; as prices are moving higher, while RSI is seen dropping down. Thus if prices breaking down below 3360 levels can bring in the most awaited correction in Crude till 3250 and next 3150.
Natural Gas: The Natural Gas prices moved higher to 209 levels during the day, but closed lower at 196. Thus forming a shooting star. If Prices breach the previous levels of 195, then prices can fall back to support area of 184-85.