MCX Gold and silver shine bright in lead-up to Donald Trump’s swearing-in; check today's trade setup

Market recap (as of 5:30 pm)

• Gold 5 Feb Futures: ₹78,963/ 10 gram (▲ 0.32%)
• Silver 5 March Futures: ₹93,009/ 1 kg (▲ 0.16%)
• Crude Oil 19 Feb Futures: ₹6,760/ 1 BBL (▼ 0.50%)

Technical structure

From a technical standpoint, it formed a bullish candle on the daily chart of 15 January and is currently trading above all its key exponential moving averages (EMAs) like 21,50 and 200.

A shooting star is a reversal candlestick pattern which is formed after an uptrend and consists of a small body and a long upper wick. It indicates potential selling pressure, as buyers fail to sustain higher prices and sellers regain control. However, the pattern gets confirmed after the close of the subsequent candle is below the low of the reversal pattern.

Traders can closely monitor the early signs of the formation of the reversal pattern. Meanwhile, a close above the previous session’s high will invalidate the pattern.

Meanwhile, the open interest data of the 17 February expiry saw significant put build-up at 6,700 and 6,500 strikes, suggesting support for the crude oil around these levels. On the other hand, the call base was established at 7,000 strike, indicating resistance for the crude around this zone.

Disclaimer:

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