Trading call on gains of MCX Crude

The crude oil's May month contracts at Multi Commodity Exchange of India Limited (MCX) look more profitable after a mild consolidation of oil prices has resumed its prospect bullish trend. We also figured out "bullish engulfing" candlestick pattern on daily charts.

The rise in crude oil futures was mostly in tandem with a firming trend in Asian trade on signs the US supply glut is easing. Meanwhile, West Texas Intermediate crude prices for June delivery rose USD 1.29 to USD 61.69, while Brent crude for June was up USD 1.01 or 1.5 percent at USD 68.53 per barrel at the New York Mercantile Exchange.

Crude oil futures surged by Rs 66 to Rs 3,923 per barrel on Wednesday as speculators engaged in creating positions amid a firm trend overseas. In futures trading at the MCX, crude oil for delivery in May shot up by Rs 66, or 1.71 percent , to Rs 3,923 per barrel, with a business turnover of 3,292 lots. The oil for delivery in June also climbed by Rs 62 or 1.57 percent to Rs 4,010 per barrel in a turnover of 250 lots.

The prices tested highs of Rs 3,886 levels per barrel, interesting to note is the volumes that moved up tremendously at 147045 against 111365 on 4 May 2015. Open interest for crude oil was at 15009 against 14983 on 4 May 2015. We are bullish on May month Futures, currently it is trading at with OI of 18050.