Energy intraday

§ Oil prices raced higher as a pipeline blast in key crude producer Iraq sparked supply jitters and geopolitical tension.

§ An explosion was reported at an oil pipeline in southern Iraq, near Basra. It is not yet known what impact the damage will have on Iraq's exports. It was the second attack on an Iraqi pipeline this week. May crude oil is steady.

§ The dollar has recouped earlier losses on relief that today's US GDP data did not yield any nasty surprises. The news that the Commerce Department left US GDP growth at an unrevised annualised rate of 0.6 pct, with consumer spending higher, bolstered US stock futures, helping the dollar to climb towards day highs against both the euro and the yen.

§ The U.S. Department of Energy said that underground supplies of natural gas were down 36 billion cubic feet last week to 1.277 trillion cubic feet. Supplies are now down 16% from a year ago.

MCX Crude Oil April (Daily Chart)



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 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations-MCX Crude Oil April: Buy at 4245 Target 4315 and 4365 Stop loss 4215

MCX Natural gas April (Daily Chart)



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 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations- MCX Natural Gas April: Buy at 385 Target 393 and 399 Stop loss 376

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