Will MCX Silver prices surpass ₹1,10,000 milestone?; check key technical levels

Market recap (as of 4:00 pm)

• Gold 5 August Futures: ₹99,327/ 10 gram (▼ 0.2%)
• Silver 4 July Futures: ₹1,09,450/ 1 kg (▲ 0.4%)
• Crude Oil 21 July Futures: ₹6,341/ 1 BBL(▲ 0.6%)

Technical structure

Gold prices started the Wednesday’s session on a muted note and have failed to provide the follow-through of the June 13 breakout. It is currently consolidating around the crucial zone of ₹1,00,000. For further momentum, traders can monitor the high of the bearish engulfing candle formed on June 16. A break above the high will signal continuation of the bullish momentum. Meanwhile, if gold slips below the June 16 low, then it can test its 21-day exponential moving average.

MCX Silver prices extended the bullish momentum for the fifth consecutive session and is currently trading above the previous session’s high. In our June 16 blog, we highlighted to our readers to monitor the break of the immediate resistance zone of ₹1,07,400. After breaking the crucial resistance zone, the silver prices have zoomed over 2% and formed a bullish candle.

However, the risk-reward for the fresh long trade has become unfavourable. For the short-term clues, traders can monitor the immediate support zone of ₹1,07,400. Traders can monitor support based buying followed by a bullish candlestick pattern to plan fresh long trades.

Crude oil prices witnessed profit-booking from higher levels after sustaining the bullish momentum. The short-term structure of the crude remains bullish and volatile. For short-term clues, traders can monitor the immediate resistance zone of ₹6,300 and ₹5,850. A close above or below this range with a strong candle on hourly or daily charts will provide further directional clues.

Disclaimer:

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