MCX Gold rebounds from 50 EMA, Silver forming directional base; check today’s trade setup

Market recap (as of 6:30 pm)

• Gold 5 June Futures: ₹93,367/ 10 gram (▲ 1.0%)
• Silver 4 July Futures: ₹95,575/ 1 kg (▲ 0.2%)
• Crude Oil 18 June Futures: ₹5,295/ 1 BBL (▼ 0.6%)

Technical outlook

Gold: Price of yellow metal rebounded from the crucial support zone of 50-day exponential moving average (EMA)and formed a hammer candlestick pattern on the daily chart. It is currently consolidating between the broad range of 94,300 and 90,800. A close above or below this range or the close above the high of the hammer pattern formed on 15 May will provide further directional insights.

Silver prices extended the consolidation for the fourth session in a row and is currently hovering around all the three crucial EMAs like 21, 50 and 200. The technical structure of the silver remains at the crucial juncture. For short-term clues, traders can monitor the price action of silver around ₹97,600 and ₹93,800. A break of these crucial reistance and support levels will provide further directional clues.

Crude oil came under selling pressure and is currently trading around crucial support zone of 21-day EMA. In the previous session, it formed an inside candle on the daily chart, signalling pause. In the upcoming sessions, traders can monitor the high and low of 15 May’s candle. A close above or below the high of this range will provide further clues.

Disclaimer:

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