return to news
  1. Upstox
    /
  2. News
    /
  3. Market News
    /
  4. Commodities
    /
  5. Commodity trade setup for November 27: Gold, silver recover after bearish engulfing pattern; Crude stays range-bound

Market News

Commodity trade setup for November 27: Gold, silver recover after bearish engulfing pattern; Crude stays range-bound

Upstox
By Upstox News Desk

3 min read | Updated on November 27, 2024, 19:00 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

Both gold and silver formed bearish engulfing candles on the daily chart on the 25th, a classic bearish reversal pattern. In addition, on a closing basis, they breached their immediate support levels at their 21-day and 50-day EMAs, signalling further weakness in the near term.

Oil prices are steady as investors remain cautious after the ceasefire deal between Israel and Hezbollah.

Oil prices are steady as investors remain cautious after the ceasefire deal between Israel and Hezbollah.

Market recap (as of 5:30 pm)

  • Gold 5 Dec Futures: ₹75,972/ 10 gram (▲ 1.0%)
  • Silver 5 Dec Futures: ₹88,575/ 1 kg (▲ 0.3%)
  • Crude Oil 18 Dec Futures: ₹5,845/ 100 BBL (▲ 1.1%)
Gold: The yellow metal trades in green, extending the gains for the second straight day. Spot gold trading 1.06% higher at $2,674 per ounce. Gold prices are rising amid higher demand for safe-haven assets after reports of increased US trade tariffs. US President-elect Donald Trump threatened to impose additional trade tariffs on China, Canada and Mexico when he takes office, sparking increased concerns over a renewed trade war between the world’s largest economies.
Silver: Silver prices are also trading higher, up 0.45% at $30.96 per ounce in the spot market. Precious metals are rising as investors await key economic data, including US Q3 GDP data and initial jobless claims to be announced late in the day.
Crude Oil: Crude oil prices were in the range on Wednesday. Brent Futures traded around $72.59, while WTI Crude traded around $69.05; both are up 0.35%. According to experts, oil prices are steady as investors remain cautious after the ceasefire deal between Israel and Hezbollah.

Meanwhile, markets also look forward to the Organization of the Petroleum Exporting Countries (OPEC+) meeting on December 1. According to reports, the OPEC+ group could delay the oil output increase set for January 2025 amid weak global demand and rising oil output outside the OPEC+ nation.

Technical structure

Gold: The price of the yellow metal rebounded after a sharp fall of over 3% on 25 November, forming a bearish engulfing pattern on the daily chart. The gold prices are currently trading below 21 and 50-day exponential moving averages (EMA), making the broader trend sideways to negative. The immediate support for the gold is around the 74,700 zone, while the resistance immediate resistance is around 79,700.
27sept1.webp
Silver: Silver prices also rebounded after closing below the 200-day EMA on 25 November, forming a bearish engulfing candle on the daily chart. The metal encountered selling pressure near the 21-day and 50-day EMAs and is currently hovering around the critical support zone of 88,200. A sustained close below this support could extend the weakness toward the 82,300 zone. On the upside, resistance is observed around 91,000, aligning with the 50-day EMA.
27sept2.webp
Crude oil: Crude prices recovered after a sharp decline of over 4% in the last two trading sessions. The technical structure indicates that crude has been range-bound between 6,100 and 5,600 over the past month. Currently, it is trading below its 21-day and 50-day EMAs on the daily chart. Unless crude achieves a decisive breakout from this range on a closing basis, the trend is likely to remain sideways.
27sept3.webp

The open interest data for crude oil's 16 December expiry indicates the highest call base at the 6,000 and 5,900 strike prices, suggesting potential resistance around these levels. Conversely, the put base is concentrated at the 5,800 and 5,700 strikes, though with relatively lower volumes.

27sept4.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.

Next Story