WTI Crude Oil Futures Registered A Three-Year High After EIA Reported Sharp Fall In US Crude Oil Inventories. However There Were Larger -Than-Expected Builds In Gasoline And Distillate Stocks. Meanwhile EIA Expects US Oil Production To Hit 10mbpd Next Month. Yesterday, Crude Oil prices hit multi-year high and traded on rise with the gain of around 2.9% weekly basis. Overall, Crude Oil price is in bullish trend; where, it is forming higher highs & higher low pattern on daily chart. Moreover, price has traded above 21 days EMA on daily chart. Furthermore, MACD is in buying mode with positive crossover. On the other hand, Fundamental sentiments are supporting the prices. Based on the above technical structure, we continue our bullish view in Crude Oil future.
LME Zinc Strengthened In The Wake Of Trade Numbers Showing Chinese Zinc Impoerts During First 11 Months Of Last Year Rising 43% On yoy Basis. This Is Clearly Attributed To The Fact Chinese Domestic Production Has Slowed So Traders/Consumers Are Sourcing The Metal From Overseas Markets.
Gold Prices Regained Lost Ground After it Is Widely Reported That China Is Contemplating At Slowing Or Hakting Purchases Of US Sovereign Bonds. However, Ensuing Rise In US 10 yr Bond Yields Restricted Any Subtantial Upside In The Yellow Metal. We Sense that China Barely Has ANy Alternative For Deploying Their FX Reserves. There Is No Market Which Is Deep Enough Other Than US Treasuries Which Can Absorb US$3 Trillion Of Chinese Reserves. The Only Possibility Lies That Beijing Will Probably Diversify Some Part Of Ots FX Reserves In Non-Dollar Assets.
On the weekly chart, MCX Gold price has been trading in bullish trend; where price has given falling trend breakout and sustained above it. In addition, Price has bounced back from middle band of Bollinger pattern; which indicate strong support for the prices. Moreover, momentum indicator RSI has turned from lower and shown positive crossover on daily chart. Based on the above technical aspects, we expect bearish movement in MCX Gold prices
MCX Natural gas price opened on flat note and shown one side bullish move in first half of the session, where it has raised by 3.5% for the day. On the daily chart, MCX Natural Gas has formed “Bullish Harami” pattern; which is a sign of trend reversal and indicate bullish move for medium term. In addition, Price has been trading between falling channel pattern; which suggest rising breakout in the prices. Therefore, based on above technical studies we expect further bullish move in MCX Natural Gas.
Copper has started the day on positive note and traded higher for entire day, which indicate positive strength in the prices. On the other hand, MCX Copper has been trading in broadening formation on daily chart; where price has shown recovery after giving a small correction. Moreover, RSI (14) has shown positive crossover on daily chart. So based on the above technical structure, we expect upside movement in MCX Copper future.