![](http://2.bp.blogspot.com/-vu5_kve1kzQ/VbmviGHJxcI/AAAAAAAATj4/XAjGc0Tv5WI/s640-rw/Crude-Oil-3.jpg)
![](http://1.bp.blogspot.com/-kxo5pUIQfuA/VfLXDODSkXI/AAAAAAAAUSM/twRodBv75Fo/s1600-rw/Chart101.jpg)
The adjacent chart shows the price movement of MCX crude oil continuous contract. Recently, the oil witnessed a sharp bounce after the multi-month correction. It broke out from the medium-term falling trendline. First leg of the bounce retraced 50% of the fall. From thereon the oil is forming a minor degree correction and is testing the key daily moving averages. It has a potential to form a triangular pattern, which will be a bullish one. Once the minor degree correction is over, the oil can start its next leg on the upside. The short-term momentum indicators are in a bullish mode. A key support zone on closing basis will be Rs2,921-2,880. On the higher side, an immediate resistance is at Rs3,095. Once that is crossed, Rs3,260–3,425 will be the target zone from short-to-medium term perspective.