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Guar Seed

                                                              Crude Oil

Crude Oil: Solace of Quantum

Crude Oil May                     BUY

CMP: `3365 (As on 04th Apr 2017)
Buy on dips: `3260-3250
Target Price: `3377-3460
Stop-Loss: < `3180

2017 didn’t start on a good note for crude oil.   Technical charts have indicated the same much before
The fuel of the fuels, which was trading on a     in the form of few divergences. Both RSI & MACD
high momentum till the end of 2016, started       were in positive divergence well in advance while ADX
to converge back on the primary bearish trend     is slowly coming out of negative forces. Now, we can
and how! The sell-off that started right on the   see a positive crossover as well in RSI & MACD. The
first day of this year extracted a hefty sum,     ‘Hammer’ candlestick pattern formed on 27th March will
equivalent to twenty five percent of the price.   act as a key support from here. The only point for bulls
                                                  to worry is a slight decline seen in volumes. However,
There are many theories doing the rounds at       this may set-off once resistances are crossed. Thus, a
fundamental level, including those regarding      good opportunity is on the cards for bulls who have
OPEC’s effort to cut more output this month       struggled a lot in last three months.
and regarding a sharp fall in shipped oil
supplies. Both these factors have created a       We recommend buying in Crude Oil May contract on
buzz in last one week and it seems that we        dips to Rs 3260-3250 for targets in the range of Rs 3377-
may see a short to mid-term rise in crude         3460. Maintain stop loss below Rs 3180.
prices. All in all, it’s a ‘quantum card’ played
to provide some kind of solace to bulls.                                                    7 ARIHANT CAPITAL ¡ APRIL 2017
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