Commodities Technical Outlook – October 23
We saw a sharp fall in gold prices as prices gave a fall from 29,950 to 29,560 levels however prices may find some support near 29,500 levels if broken, could see prices drifting towards 29,300 levels. The momentum indicator, RSI has remained above 40 levels. If we see prices are sustaining above the mentioned level, we could see prices heading towards 29,700 levels. Silver prices are in the formation of inverse head and shoulder pattern where right shoulder is in progress while neckline level is at 40,600 mark. If we see prices breaking neckline level of 40,600 then we might see Rs 1000 rally in prices.
NYMEX Crude oil prices are trading near its multiple resistance level of $52.22 levels while on MCX we see prices hovering near 3,320 to 3,400 levels. Sustaining above 3,400 levels would give positive confirmation to the prices and we might see prices climbing towards 3,500 mark. Natural gas prices are in the process of forming double bottom formation where the bottom lies near 185.80 levels. RSI is ranging between 60 – 40 levels, crossing above 60 marks can add bullishness in the prices.
Base Metals View
Aluminium and nickel prices had given false breakout as they moved lower following their breakouts. Copper prices remained silent while lead is hovering near its support level of 160.50 which suggest breach of the mentioned support can give a fall in prices till 158.50 levels. Zinc is trading in a broad range of 208 to 203 levels. Breakout on either side would give the directional move.