MCX Gold forms bearish engulfing pattern, crude oil maintains downtrend; check today's trade setups

Market recap (as of 6:00 pm)

• Gold 4 April Futures: ₹85,021/ 10 gram (▲ 0.39%)
• Silver 5 March Futures: ₹95,618/ 1 kg (▲ 0.03%)
• Crude Oil 19 March Futures: ₹6,160/ 1 BBL (▼ 0.08%)

Last week, U.S. President Donald Trump said his officials had begun discussions with Russia to end the war in Ukraine. As per experts, If these negotiation efforts lead to some resolution, then more Russian oil barrels would enter global supplies, which could significantly impact oil prices negatively.

Technical structure

The daily chart of 4 March futures saw the formation of bearish engulfing pattern on February 14th. The reversal pattern will be confirmed if the close of the subsequent candle is below the low of the February 14th. Meanwhile, a close above the high of the reversal pattern will negate the pattern.

Meanwhile, the technical structure of 5 March Futures on MCX failed to capture the resistance zone of ₹96,500 on a closing basis. This indicates that silver may consolidate between the support zone of ₹93,600 and the resistance of ₹96,500. A break of this range on a closing basis will provide further clues.

The open interest data for the 17 March expiry saw significant call options build-up at 6,200 and 6,300 strikes, indicating resistance for crude around this zone.

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