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  5. Gold reclaims 21 EMA, crude oil continues bullish momentum; check today's trade setup

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Gold reclaims 21 EMA, crude oil continues bullish momentum; check today's trade setup

Upstox
By Upstox News Desk

2 min read | Updated on January 02, 2025, 19:42 IST

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SUMMARY

After ending the week above previous week’s high, the crude oil extended the bullish momentum for the fifth day in a row and jumped over 1%. It turned the crudial resistance zone of 6,100 into support, suggesting continuation of the bullish momentum.

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Commodity trade setup 2 Jan: Gold reclaims 21 EMA, Crude oil continues bullish momentum

Market recap (as of 7:15 pm)

  • Gold 5 Feb Futures: ₹77,316/ 10 gram (▲ 0.55%)
  • Silver 5 March Futures: ₹88,527/ 1 kg (▲ 1.08%)
  • Crude Oil 17 Jan Futures: ₹6,265/ 1 BBL (▲ 1.52%)

Technical structure

Gold: The yellow metal extended the positive momentum for the third consecutive day after reclaiming the 21 and 50 day exponential moving average (EMAs). However, the broader structure of gold still remains rangebound within November’s range and until it breaks this range on closing basis, the trend may remain sideways.
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Silver: The silver prices extended the positive momentum for the second day in a row after rebounding from the crucial support zone of ₹86,000. However, it is important to note that the broader structure of the silver remains weak as it is trading below its all its key exponential moving averages like 21, 50 and 200 (EMAs). Unless it replaces 50 EMA on closing basis, the trend may remain weak.
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Crude oil: The crude oil extended its bullish momentum for the fifth day in a row and jumped over 1%. This comes after the crude jumped over 1% last week and closed above the previous week’s high and converted the resistance zone of ₹6,100 into the immediate support. Unless it slips below this support zone, the trend may remains bullish.
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The open interest (OI) data for the 15 January of crude oil remains bullish with the highest put OI at 6,000 and 5,900 strikes. This indicates that the underlying momentum of the crude remains bullish with immediate support around 6,100 zone.

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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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