MCX crude oil consolidates around ₹6,700, Gold sustain bullish momentum ahead of US inflation data

Market recap (as of 5:00 pm)

• Gold 5 Feb Futures: ₹78,541/ 10 gram (▲ 0.49%)
• Silver 5 March Futures: ₹91,152/ 1 kg (▲ 0.66%)
• Crude Oil 17 Jan Futures: ₹6,716/ 100 BBL (▼ 0.30%)

Technical structure

For the short-term clues, traders can monitor the range of ₹79,200 and ₹78,000. A breakout of this range with a strong candle on intraday or closing basis will provide directional clues.

However, traders should also monitor the resistance zone of 50 and 200 EMA along with the downward sloping trendline. A close above these levels and doji’s high will signal bullish momentum. On the other hand, a close below the doji will indicate weakness.

However, it is important to note that the broader trend in crude oil remains positive with immediate support around the ₹6,300 zone. As long as crude does not break below this zone, the trend may remain positive. On the other hand, if it breaches ₹6,800 with a strong candle on both intraday and closing basis, it will resume its uptrend.

The open interest data for the 17 February expiry saw significant call and put build-up at 6,700 strike, suggesting consolidation around this zone. Additionally, substantial call and put base was also seen at 7,000 and 6,500 strikes, indicating that these zones may act as immediate resistance and support levels.

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