Crude oil sustains bullish momentum, silver to reclaim 21 EMA?; check today's trade setup

Market recap (as of 6:40 pm)

• Gold 5 Feb Futures: ₹77,404/ 10 gram (▲ 0.11%)
• Silver 5 March Futures: ₹91,263/ 1 kg (▲ 2.2%)
• Crude Oil 17 Jan Futures: ₹6,389/ 1 BBL (▲ 0.25%)

Technical structure

However, with broader trend remaining range-bound, traders can keep an eye on the high and low of the indecision candle. A breakout from this zone will provide short-term directional clues. Meanwhile, investors should keep an eye on weekly 20 EMA. If gold surrenders the crucial support level on closing basis, it may extend weakness upto 50 weekly EMA. Meanwhile, a close above $2,650 on the spot chart will change the trend in favour of bulls.

For the upcoming week, traders should focus on the $75 on the spot chart of WTI. If crude reclaims this crucial resistance zone, which coincides with its 200 weekly EMA—then it may extend the bullish momentum up to $79. On the flip side, a close below $72 will change the trend in favour of bears.

The open interest data of the 15 January expiry on MCX reflects continuation of the bullish momentum. The maximum put base was seen at 6,000 and 6,300 strike, suggesting support for the crude around these zones. Conversely, the call base was seen at 6,400 strike with relatively low volume.

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