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  5. Commodity trade setup for November 18: Gold and crude oil rebound from crucial support, silver protects 200 EMA

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Commodity trade setup for November 18: Gold and crude oil rebound from crucial support, silver protects 200 EMA

Upstox
By Upstox News Desk

3 min read | Updated on November 18, 2024, 19:05 IST

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SUMMARY

Crude oil prices fell below the 5,700 level on Friday, signalling potential weakness in the market. Crude oil is currently trading around the critical 5,600 level, a support zone from where crude has rallied twice before. A break below this level could intensify the bearish momentum. On the upside, resistance remains firmly in place at 5,800.

Silver prices of 5 December contract respected the 200 EMA and rebounded from lower levels.

Silver prices of 5 December contract respected the 200 EMA and rebounded from lower levels.

Market recap (as of 7:00 pm)

  • Gold 5 Dec Futures: ₹74,824/ 10 gram (▲ 1.1%)
  • Silver 5 Dec Futures: ₹89,950/ 1 kg (▲ 1.7%)
  • Crude Oil 19 Nov Futures: ₹5,717/ 100 BBL (▲ 0.6%)
Gold: The yellow metal started the week on a positive note, with spot gold trading 1.2% higher at $2,602 per ounce. Gold prices rebounded as a rally in the US dollar slowed. A weaker dollar makes gold more affordable for those holding other currencies.
Silver: Silver prices are also trading higher, up 1.48% at $30.89 per ounce in the spot market. Precious metals are also trading higher in today’s trading session. However, investors await the outcome of key economic data, such as Eurozone Inflation data. Several key central bank officials, including ECB President Lagarde, will speak this week.
Crude Oil: Crude prices are trading higher on Monday. Brent Futures traded around $71.52, while WTI Crude traded around $67.34. Oil prices are on the rise after Russia intensified its attack on Ukraine over the weekend.

Technical structure

Gold: The technical structure of the yellow metal rebounded from the lower levels and is trading in the green. However, unless it reclaims the 50 exponential moving average (EMA), the trend may remain sideways. As shown in the chart below, the immediate support is around 72,700 zone, while the immediate resistance remains at 74,750.
comm1.webp
Silver: The silver prices of 5 December contract respected the 200 EMA and rebounded from lower levels. It also protected the immediate swing low of 88,222 on closing basis, indicating that the higher-high and higher-low structure remains intact. Meanwhile, the broader trend remains range-bound with immediate resistance around 50 EMA. Unless its breaks this range of swing low and 50 EMA on intraday basis with a strong candle, the trend may remain sideways.
comm2.webp
Crude oil: Oil prices slipped to the crucial support zone of 5,600 on 15 November, reflecting weakness. Currently, crude prices are trading at important juncture. A close below the support zone (5,600) shown on the daily chart may invite further selling pressure. Meanwhile, a close above 5,850 will shift crude prices into the consolidation zone with resistance around 6,100.
comm3.webp

Open interest

The open interest (OI) data for the 16 December expiry has call base at 5,800 and 5,700 strikes, indicating resistance for the crude prices around these levels. On the other hand, the put base was seen at 5,700 and 5,600 with relatively lower volume.

comm4.webp

Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for the client's consumption, and such material should not be redistributed. We do not recommend any particular stock, securities, or strategies for trading. The securities quoted are exemplary and are not recommendatory. The stock names mentioned in this article are purely to show how to do analysis. Take your own decision before investing.

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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