MARKET OUTLOOK OF CRUDEOIL FOR 29 JULY 2016

CRUDEOIL: MCX Crude Oil prices have been taken support of lower band of Falling channel formation on hourly chart. In Addition, NYMEX Crude oil prices observed positive divergence in hourly chart. Moreover, Momentum indicator RSI is trading in oversold zone 30 on hourly chart. For now we expect prices to move higher towards 2840 levels in coming trading sessions.

	R2	R1	S1		S2	TREND
CRUDEOIL	2869	2825	2758		2735	SIDEWAYS

Oil prices settled down nearly 2 percent on Thursday, hitting April lows and with U.S. crude headed for its biggest monthly loss in a year, on growing worries that the world was pumping more crude than needed. Surplus barrels of gasoline already have made the glut

developing in oil this year more worrisome to some than the crude oversupply of the past two years that had halved prices. U.S. Gulf Coast gasoline stocks hit record highs last week for the month of July while East Coast inventories reached all-time peaks, government data showed on Wednesday.
Outlook :We expect crude oil prices to trade negative on the back of buildup in inventories.