Commodity trade setup 16 Dec: Gold and Silver rebound after a volatile week, Crude slips on profit-booking

Market recap (as of 7:15 pm)

• Gold 5 Feb Futures: ₹77,075/ 10 gram (▼ 0.08%)
• Silver 5 March Futures: ₹91,115/ 1 kg (▲ 0.1%)
• Crude Oil 18 Dec Futures: ₹6,013/ 1 BBL(▼ 0.4%)

Technical structure

For the upcoming sessions, investors can monitor the 20 weekly exponential average on the sport chart. Unless gold slips below this level on a closing basis, the trend is expected to remain positive. Meanwhile, for short-term clues traders can monitor the range of ₹79,100 and ₹76,400 of the 5 February Futures on MCX. A break of this range will provide further directional clues.

Meanwhile, the short-term structure of the silver has turned weak and until it breaks the previous week’s range, it may remain range-bound between the broad range of ₹96,000 and ₹89,000.

Despite this, the broader structure of WTI crude oil has remained range-bound between $67 and $73 over the past five weeks. A decisive close above last week’s bullish pattern’s high could signal a potential extension of gains, with prices targeting the upper range limit of $73.

The open interest data on the MCX of 15 January expiry saw significant call and put base at 6000 strike, suggesting range-bound activity around this level for the upcoming sessions.

Disclaimer:

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