MCX Gold price started the session on a soft and remained in a narrow range throughout the day note ahead of FOMC minutes . In addition, price held above both 21 EMA and 50 EMA. Besides, a bullish reciprocal ABCD harmonic pattern is visible in the COMEX Gold. Furthermore, on the daily chart RSI (14) has entered in a bullish crossover. However, on the higher end a falling trendline may act as resistance fore the near term which is currently pegged at 29900.
Gold prices are just below the resistance, previous candle high at 1296. A break and close above that would continue the upside rally as per the “White Soldiers candlestick pattern . Currently, prices reflect consolidation. Gold prices trade in short term uptrend mode and have broken resistance slope line at 1280(29600) followed by “Falling Wedge Pattern”. Currently, prices are expected to move towards 1303-1316(29850-30200) level.
On the daily chart, MCX Silver has moved above the falling trendline on the daily chart. In addition, price moved above 200 DEMA on the daily chart. In addition, price has moved 38.20% retracement of the previous fall from 41927 to 38710.. Moreover, On the daily chart RSI (14) has entered in a bullish crossover. Therefore, the short term trend remains bearish; on the lower end prices may move towards 40650 over the short term.
BASE METAL :
In daily chart, the MCX Copper price has given a cup and handle pattern on the daily chart which is a very bullish set up. Moreover, price has sustained above 21 EMA in the daily chart. In addition, daily RSI is in bullish crossover and rising. Based on the above analysis we keep our bullish view on MCX Copper with a revised price potential of 450 in the near to short term.
CRUDE OIL :
MCX Crude Oil price remained in a narrow range throughout the session. In addition, price has moved 38.20% retracement of the previous fall from 3472 to 3218. Moreover, NYMEX crude has moved above the psychological $50 mark. Moreover, 4 hourly RSI is in bullish crossover. Based on the above analysis we can come out with a view that Crude price may move up towards 3420 over the near term.
Short term Intraday Opportunity: Crude oil prices on previous support became resistance now at $ 51.30. More selling pressure is likely. A break above $51.30(3240) and close of a 4H candle could lead towards $52-53 levels (3395-3450). Support holds at $50.60(3300). Currently, crude oil prices hit partially uptrend. The next signal will be generated once a breakout occurs.
Oil futures moved hogher as OPEC alludes to improvement in demand and mitigating supply glut. Higher global economic growth forecasts is also underpinning the energy complex. Meanwhile, there are renewed supply concerns as US President Trump may not ratify the Iran nuclear accord, which was signed by his predecessor Barack Obama. Trump administration terms the deal with Teheran as uncongenial to US interests. A decertification of the deal will put the ball in the court of congressional leaders who have to decide within next two months whether to re-impose sanctions on Iran, including the country’s oil exports.