MCX Gold struggles at key resistance; Crude reclaims 21 EMA; check today's trade setup

Market recap (as of 4:00 pm)

• Gold 5 Aug Futures: ₹97,219/ 10 gram (▼ 0.1%)
• Silver 5 Sept Futures: ₹1,08,266/ 1 kg (▲ 0.7%)
• Crude Oil 21 July Futures: ₹5,748/ 1 BBL (▼ 0.09%)

Technical view

Gold prices faced resistance around its 21-day exponential moving average (EMA) for the third session in a row and failed to capture the crucial zone on a closing basis. However, the broader trend of gold has been rangebound between ₹95,000 and ₹1,00,000. In the upcoming sessions, traders can monitor the price action around the 50-day EMA. A break above this support zone will signal weakness.

Silver prices sustained its bullish momentum for the third session in a row and formed a bullish candlestick pattern on 2 July. Additionally, it formed an inverted hammer candlestick pattern on 1 July. For short-term clues, traders can monitor the high and low of 1 July. A close above or below these levels will provide further directional clues.

Crude oil prices rebounded from the crucial support zone at ₹5,500 and reclaimed both the 21-day and 50-day EMAs on July 2. It also closed above the high of the previous five sessions, indicating support-based buying at lower levels.

However, the broader trend for crude oil remains rangebound, with a significant gap still unfilled from June 24. In the upcoming sessions, if crude oil closes above the June 24 high, it may attempt to fill that gap. Conversely, a close below ₹5,500 would indicate weakness.

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.