#CrudeOil update | MCX | 5- 7th April Timeframe: 1 Hour
Crude oil opened with a gap-up today, indicating bullish momentum.
The price faces resistance at the 7255 level, a significant barrier observed in historical price action.
Anticipation of a gap fill suggests a potential retracement to fill the void created by the gap-up opening.
Support is identified between the 7150-7130 zone, where buying interest is expected to emerge.
Trend Analysis:
In the short term, crude oil is exhibiting bullish momentum, supported by the gap-up opening.
However, the resistance at 7255 suggests a potential reversal or consolidation.
Technical Indicators:
Moving Averages: The 50-day and 200-day moving averages may act as dynamic support levels, reinforcing the overall bullish bias if the price remains above them.
Relative Strength Index (RSI): Currently, the RSI indicates overbought conditions, suggesting a potential pullback or consolidation in the near term.
Trading Strategy:
Long Opportunity: Traders may consider entering long positions if the price successfully breaks above the 7255 resistance level, targeting higher price levels.
Short Opportunity: Alternatively, a short position could be initiated if the price fails to sustain above the resistance level and breaks below the support zone of 7100.
