Bullions initially gave a gap down opening as suggested in Friday’s Commodity Mantra. We saw prices headed higher in the second session where prices gave a close near their day’s high indicating strength. Silver prices had given ‘Bullish Flag’ breakout along with the momentum indicator, RSI which has moved above 60 levels on hourly charts which would add bullishness to the prices. We expect prices to remain strong.
Crude oil continued its higher top higher bottom formation. Prices had given Flag break out which considered to be bullish. Moreover, RSI has formed Positive reversal on hourly charts which would give positive confirmation to the prices. We now expect prices to remain strong and could head higher towards 3,315 levels. Outlook for natural gas remains bullish as long as 202 is protected on downside RSI is above 40 levels on hourly charts, which would add bullishness to the prices.
Aluminium has taken support on weekly charts, and as 124 is holding strong, any dip near 125-125.5 can be considered to be buying zone with a target of 127.5. Copper too is holding on to its weekly support, one must consider buying with stop loss of 377 for higher price targets of 389-395 in few sessions. Nickel may see some relief rally; consider lower levels of 645-647 to add long positions, with targets of 658-665.