MCX Silver rebounds from 21 EMA, Crude oil break crucial support of ₹5,500; check today’s trade setup

Market recap (as of 5:00 pm)

• Gold 5 Oct Futures: ₹1,00,468/ 10 gram (▲ 0.3%)
• Silver 5 Sept Futures: ₹1,15,251/ 1 kg (▲ 1.3%)
• Crude Oil 19 Aug Futures: ₹5,490/ 1 BBL (▼ 1.0%)

Technical view

Gold prices took support around the 21-day exponential moving average along with the crucial trendline support of the rising wedge pattern. It formed a hammer candlestick pattern around the support zone on 12 August and is currently trading above the high of the bullish reversal pattern. For short-term clues, traders can monitor the price action around the hammer pattern. A close above the high will confirm the reversal pattern, signaling trend reversal. Meanwhile, a close below the low of the hammer pattern will invalidate the reversal pattern, indicating weakness.

Silver also started Wednesday's session on a bullish note after rebounding from its 21-day EMA and is currently trading around the crucial resistance zone of ₹1,15,800. It is forming a bullish candle on the daily chart and trading above the high of the previous two trading sessions. For the upcoming sessions, traders can monitor the range of ₹1,15,800 and ₹1,12,817. A break above or below this range will provide further directional insights.

Crude oil broke the two-day consolidation and slipped below the immediate support zone of ₹5,500, indicating weakness. The broader technical structure of crude oil remains weak as it is trading below both its 21 and 50 day EMAs. Unless it reclaims the immediate resistance zone of ₹5,500 on a closing basis, the trend may remain bearish.

Disclaimer:

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