Energy intraday

Major Headline:

- Oil jumped as investors poured money back into commodities on expectations of an interest rate cut in the United States and in hope that raw materials will provide them with a useful hedge against wider market weakness.

- Such weakness was confirmed earlier today in poor U.S. data, which reignited fears of a recession and sparked talk of another interest rate cut.

- Data out earlier from the Labor Department showed the U.S. economy has shed jobs for three consecutive months, losing 80,000 non-farm jobs in March, compared to an expected 50,000 job-loss forecast by analysts.

- The data also showed unemployment rose to its highest level in two and a half years the same month.

- Oil prices have not headed lower in response, as players choose to set aside for now longer-term fears that oil demand will decline as US economic growth withers.

- According to data released Wednesday by the U.S. Energy Information Administration, demand for crude oil products fell an annual 1.3 percent over the last four weeks, while crude stocks surged 7.4 million barrels last week.

- On the other hand, however, the data also showed gasoline stocks declined by a much larger than expected 4.5 million barrels last week. Traders chose to focus on this figure rather than on falling demand or rising crude stocks.

- As a result, oil prices rose sharply on Wednesday, but have since retraced some of those gains.

MCX Crude Oil April

Technical Outlook:Momentum studies are bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 21-day EMA. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations-MCX Crude Oil April: Buy at 4180-60 Target 4255 and 4285 Stop loss 4145

MCX Natural gas April

Technical Outlook: Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations- MCX Natural Gas April: Sell at 380 Target 370 and 363 Stop loss 385.50

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