Crude Oil is consolidating near 5,658 after a sharp upside move, reacting to mapped levels designed for intraday momentum traders.
Long Trade Logic
Long Entry (5,605):
Enter long above 5,605, as prior resistance now acts as support. Momentum buyers may lift prices further if this level holds on a retest.
Consider adding near 5,580 for pyramiding if price action sustains above this band.
Targets (5,761 / 5,840):
First target (5,761): Anticipate supply at previous swing high where price faced resistance earlier.
Second target (5,840): Upper resistance mapped from previous session’s range extremes, expect potential profit-taking.
Stop Loss Placement:
Keep stops below 5,555 to mitigate risk, as breakdown here signals failed uptrend and may trigger aggressive selling.
Short Trade Logic
Short Entry (5,555):
Go short beneath 5,555, as breach of this level breaks the structure and signals bears regaining control.
Targets (5,503 / 5,424):
Target 1 (5,503): Previous intraday pivot, where covering and bounce attempts may emerge.
Target 2 (5,424): Deeper support—if hit in momentum, expect further liquidation.
Short Exit / Stop:
Exit shorts above 5,634 (Short Exit) to avoid whipsaw. Indicates failed breakdown and recovery by bulls.
Neutral Zone & Structure Logic
Neutral Zone (5,632):
Price trading in 5,632 zone signals indecision; best to avoid new trades unless decisive break above/below occurs.
Structural View:
The recent rally and subsequent pullback to the mapped levels provides a framework for range-based or momentum trades.
Volume confirmation near entry levels is suggested for sustaining positions.
This chart logic ensures discipline, risk management, and clarity for both breakout and reversal-oriented trading approaches on MCX Crude Oil Futures intraday.
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