Crude Oil: 38.50-40.50 May Be Proved As A Big Hurdle In The Days Ahead

Only sustaining above  38.50-40.50 Crude oil can rally up to 46.50-57.50 zone;

Otherwise it can again fall towards 29-26 area.

All round co-ordinated production cut talk may be a fantasy

and basic dynamics of supply demand situation may not be changed by 2016-17. 

For Crude, 40-30 range may be the new normal in 2016.

Trading Idea:

CMP: 37

Either sell below 38.50 or on rise around: 39.50-40.50;

TGT: 33.45-29.10-26.05-24

TSL> 44-46.50

Note: Consecutive (3 days) closing above 46.50 for any reason,Crude may further rally up to 58*-63-70-79 in the mid to long term (alternative bullish case scenario from the present trading level)

 Analytical Charts: