MCX silver eyes breakout from consolidation, crude oil takes breather around ₹6,400; check today's trade setup

Market recap (as of 6:45 pm)

• Gold 5 Feb Futures: ₹77,623/ 10 gram (▲ 0.12%)
• Silver 5 March Futures: ₹90,895/ 1 kg (▲ 0.02%)
• Crude Oil 17 Jan Futures: ₹6,407/ 1 BBL (▲ 0.34%)

Technical structure

Despite this upward movement, the broader trend remains range-bound. A decisive breakout above the immediate resistance at ₹78,000 could pave the way for an extended rally toward ₹79,000. Conversely, a close below ₹75,600 would signal weakness and could shift the momentum downward.

In the upcoming sessions, traders should closely watch the range between ₹90,250 and ₹92,000. A decisive breakout from this range will offer clearer directional cues for future movement.

The pole-and-flag pattern is a well-known continuation pattern in technical analysis. It begins with a sharp price movement (the pole), followed by a period of consolidation (the flag), often culminating in a breakout in the direction of the initial trend.

In the upcoming sessions, traders should keep an eye on the immediate support zone at ₹6,250. As long as crude prices remain above this level, the bullish trend is likely to persist. However, a close below this support zone could signal the start of a consolidation phase.

The open interest data for the 15 January expiry sustained a bullish build-up with maximum put bases at 6,000 and fresh build-up at 6,300 strike. This suggests that these levels may act as support for the crude oil. Conversely, the significant call and put base build-up was seen at 6,400 strike, signalling immediate consolidation around this zone.

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