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Home >Markets >Commodities >Crude oil price may go up to 6500 per barrel in near term: Sumeet Bagadia
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Crude oil price on Friday breached $80 per barrel mark for the first time since November 2014. This rise in crude oil price is due to the sharp rise in demand while supply still remains tight. According to Sumeet Bagadia, Executive Director at Choice Broking, crude oil prices on Multi commodity Exchange or MCX may go on to hit 6500 per barrel in next one to two months. He said that chart pattern in regard to crude oil is highly bullish as it has given breakout at 5827 per barrel on MCX.

Speaking on the crude oil price’ chart pattern, Sumeet Bagadia said, "The crude oil prices have been soaring continuously for last couple of days, which indicates a bullish presence on the counter. The oil price has gained more than 23 per cent since 27th August 2021 and made a high of 5827 levels in the recent week. Overall, the crude oil price has given a multi-year breakout on the monthly chart and shifted above the 2018 and 2014 highs, which indicates a major breakout in the commodity and more bullish strength for the near term."

The Choice Broking expert went on to add that on the weekly timeframe, crude oil price has been trading above 'Ichimoku Cloud' formation and 50-EMA (Exponential Moving Average), which confirms the bullish trend for near term.

"On the daily chart, the price has shifted above the prior swing highs of 5688 levels and gained almost 2.5 per cent with the high of 5827 levels. Also, a momentum indicator RSI and Stochastic has suggested positive crossover with supportive volume. Another indicator MACD has also indicated a positive crossover on the daily chart," said Sumeet Bagadia of Choice Broking.

Source: Choice Broking
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Source: Choice Broking

"We are expecting a bullish move in crude oil price in next one to two months near term time horizon for the potential target of 6200 per barrel to 6500 per barrel on MCX. However, on the downside, the support may come around 5400 per barrel to 5500 levels," concluded Sumeet Bagadia.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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