Commodity trade setup Jan 27: Gold closing in all-time high, Crude oil slips below previous week’s low

Market recap (as of 18:14 pm)

• Gold 5 Feb Futures: ₹80,014/ 10 gram (▼0.0%)
• Silver 5 March Futures: ₹91,080/ 1 kg (▼0.5%)
• Crude Oil 19 Feb Futures: ₹6,418/ 100 BBL (▼0.1%)

Technical structure

Similarly, the 5 February futures contract of MCX is trading near its all-time high of ₹80,282 and has started the Monday’s session on a positive note. A break above this level will further increase the bullish momentum. On the other hand, the immediate support for gold is around ₹79,000 zone.

However, the price action of the 5 March futures contract witnessed selling pressure in the first half of the trading session. As shown on the chart below, it is consolidating between ₹93,600 and ₹90,250 zone and has failed to breakout above the downward sloping trendline coming from its recent all-time high. For the upcoming sessions, traders can monitor the above mentioned range. A close above or below these levels will provide further directional clues to traders.

Meanwhile, the 19 February’s futures on MCX is currently trading in negative territory, extending the losses for the eighth session in a row. It is currently trading below the 21-day exponential moving average (EMA), indicating weakness. For the upcoming sessions, traders should monitor the resistance zone of ₹6,600. Unless crude reclaims this level, the trend may remain bearish. On the flip side, the next crucial support is around ₹6,200.

The open interest data for the 17 February expiry witnessed significant build-up of call open interest (OI) at 6,500 strike, indicating resistance for the crude around this zone. Conversely, the put base was seen at 6,400 strike, with relatively low volume, pointing at immediate support for crude around this level.

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