Commodity Trading Strategies: Commodity prices traded on a mixed note on Thursday, as bullion prices traded steady on pandemic worries while crude oil prices declined on demand growth worries and inventory build. Base metals complex traded on a weak note as they pared gains from the previous session. Here is a look at how different commodities are behaving in today’s market.
Outlook: Bullion
Bullion prices traded steady with spot gold price at COMEX was trading near $1792 per ounce while spot silver price at COMEX was trading marginally down at $26.44 per ounce in the morning trade. Bullion prices rallied in previous session on pandemic worries as rising cases in Japan and India with partial lockdowns added risk premium to the prices. The precious metals gained on safe haven buying despite of a firm dollar and muted bond yields. We expect bullion prices to trade sideways to up for the day.
Commodity Trading Strategies Trading Strategy:
- MCX Gold June resistance for the day lies at Rs. 48500 per 10 grams with support at Rs. 47800 per 10 grams.
- MCX Silver May support lies at Rs. 68900 per KG, resistance at Rs. 71500 per KG.
Outlook and Forecast : Crude Oil
- Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices were trading 0.42% down to $61.09 per barrel in the morning trade. Crude oil prices traded under pressure on worries over fuel demand recovery with a surge in virus cases across globe.
- Crude oil prices witnessed selling after EIA report showed surprise build in the weekly inventories. The partial lockdown in India and rising cases in Japan and Brazil may also keep the oil prices under check due to economic slowdown. We expect crude oil prices to trade sideways to down for the day
Commodity Trading Strategies Trading Strategy:
- MCX Crude Oil May support lies at Rs. 4540 per barrel with resistance at Rs. 4670 per barrel.
Base Metals Forecast:
Base metals complex traded weak as most of the metals pared previous session’s gains on Thursday morning. Base metals traded in the red on demand worries over rising virus cases. Aluminium prices rose to the highest levels since 2018 at Shanghai on China’s effort to curb emission. The lower supply has boosted domestic prices recently. Copper prices traded firm, keeping to upper trading range over tight supplies and higher demand. Base metals are expected to trade sideways to up for the day.
Trading Strategy:
- MCX Copper April support lies at Rs. 720 and resistance at Rs. 728.
- MCX Zinc April support lies at Rs. 224, resistance at Rs. 230.
- MCX Nickel April support lies at Rs. 1190 with resistance at Rs. 1240.
- MCX Gold continued to trade higher and tested the immediate resistance near Rs 48400. Since then, price has been in a consolidation between Rs 48100-48300. A breakout above Rs 48400 might once again give bulls the edge to take it past Rs 48800.
- On the flip side, support is pegged at Rs 48000. A break below Rs 48000 might take it lower till Rs 47800-47700. Strong support is at Rs 47500, below which the upside momentum might fade. To conclude, buying might remerge either in dips near Rs 48000-47800 or on a sustained break above Rs 48400.
Gold Trading Strategy and Tips:
Buy MCX Gold June at Rs 47720—47670 with a target of Rs 48400 and a stop loss at Rs 47500.
- MCX Silver continued to shine as it went past the immediate resistance of Rs 69500 and closed above the psychological levels of Rs 70000. Now the resistance at Rs 69500 has turned into support and the bulls might target the next resistance at Rs 71200.
- Momentum oscillator RSI is near 63 supporting the bull case. Immediate support is pegged near Rs 69800 and strong support near Rs 69500. Going by the above evidences, we expect buying to remerge on dips with an upside objective of Rs 71200. A sustained close below Rs 69400 might negate the bullish momentum.
Silver Trading Strategy and Tips:
Buy MCX Silver May at Rs 69800 with a target of Rs 71200 and a stop loss at Rs 69400.
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