Crude oil prices tumbled over the last week. Brent crude oil futures on the Intercontinental Exchange (ICE) ($91.10/barrel) and crude oil futures in the domestic market (₹8,281/barrel) slumped 12 per cent and 9.7 per cent, respectively.

Brent futures ($91.10)

Brent crude oil futures closed below a crucial support at $94 last week. While this indicates that the bulls have lost strength, there is one more support ahead at $88, which the buyers will resort to.

In case there is a recovery, Brent crude futures can rise to $97. A breakout can lift to $102-103 price band. But given the prevailing price action, a rally past $97 is unlikely.

A breach of $88 can trigger another leg of downswing, dragging the price to $80-82 support band.

MCX-Crude oil (₹8,281)

Crude oil futures (Jun) slipped below the 50-day moving average support last week. The chart shows that the contract has formed a double-top pattern by witnessing a rejection twice at ₹10,000 in the last month. The neckline is at ₹8,200. 

A breach of ₹8,200 will confirm the pattern, leading to a price decline to ₹6,400, per this chart set up. But there are support levels at ₹7,600 and ₹7,000, which can, at the least, trigger a corrective rally.

Only a rally beyond ₹9,160 will lead to a sustainable recovery from the current level. Overall, there is a bearish bias. 

Trade strategy: We had suggested a long position at ₹9,200 with stop-loss at ₹8,200. Hold this for now and we suggest the below action if the stop-loss is hit.

Go short if the crude oil futures breaches the support at ₹8,200. Target and stop-loss can be ₹7,000 and ₹8,800, respectively.

Published on May 30, 2026