Demand Zone Breakdown + Trade Strategy

📈CRUDE OIL FUTURES | 15-Min Chart Analysis
📆Date: June 3, 2025
Ticker: MCX:CRUDEOIL!

Chart Overview:
The chart highlights a bullish reversal from previously marked demand zones. Price sharply bounced with volume confirmation, indicating renewed buying interest.

Two demand zones have been marked for observation:
Possible Strong Demand Zone: ₹5389–5377 | SL Below ₹5376
Possible Demand Zone: ₹5360–5347 | SL Below ₹5346

Price is currently trading around ₹5,425, showing a significant up move post-demand zone test, suggesting buyer dominance in the short term.

Demand Zone Breakdown:
🟩🟩 Strong Demand Zone (₹5389–5377):
Strong volume-backed bullish engulfing formed after price dipped here.
Ideal zone for aggressive long entries with SL below ₹5376.

🟩 Lower Demand Zone (₹5360–5347):
Acts as deeper support and a conservative re-entry zone.
Long entries possible with SL below ₹5346 if retested.

How to Trade Demand Zones (Long Trade):
Wait for a retest of the zone.
Watch for bullish confirmation candles (hammer, bullish engulfing, etc.).
Enter long near the bottom of the zone.
Place SL just below the demand zone.

Stop-Loss Placement:
For Strong Demand Zone: SL below ₹5376
For Lower Demand Zone: SL below ₹5346

Targets: Use Risk-Reward Ratio
🎯 Use a 1:2 or 1:3 RRR to set logical target levels.
📌 Example: If risk is ₹10, target should be ₹20–₹30 above entry.

💡 Why Use Risk-Reward?
Sets clear and objective targets
Keeps emotions out of trading decisions
Helps maintain long-term profitability with disciplined risk control

⚠️ Risk Management Tip:
Always trade with a clearly defined stop-loss. Avoid impulse entries. Start with small quantities and increase size only with confirmation. Capital protection comes first.

📢 Disclaimer
This post is intended for educational and informational purposes only. It does not constitute investment advice or trade recommendations. Trading in commodities and financial markets involves risk. Please consult a SEBI-registered advisor before making financial decisions. The author is not SEBI registered and shall not be liable for any losses. Always use proper risk management and do your own research.

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