Triangle Breakout Hints Bullishness in Crude MCX

Crude oil has been moving in a descending triangle that can be seen clearly on chart provided above and now trading near descending trend line resistance of this triangle which is around 6150. Commodity has also climbed above its 50 days SMA and 10 days SMA is also ready to climb above 50 days SMA that is also a bullish sign overs short term time frame. MACD has given a bullish cross above signal line and now fluctuating near zero line and further stability above zero line would trigger strong bullishness in this counter. Stochastic is also getting support around 50 and now getting ready for a bullish cross that indicates strengthen bullish forces in this commodity. Immediate support is now placed near 6050 zones any failure below this level would neglect current bullishness and then commodity will try heading towards 5950 zones and closing below 5950 would bring 5800 and more down side. Stability above 6050 remains bullish for this commodity and any closing above 6200 would bring 6300 and 6400 in coming days.

Recommendation: buying crude around 6120-6100 with stop loss below 6050 on closing basis for targeting 6200-6300-6400 and more upside might be appropriate in short term.

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