Commodities Technical Outlook for Today
Yesterday, we observed a small trading range in bullions where silver remained below its support level of 39,500 while gold maintained above its support level of 29,430. On the hourly chart of MCX Silver, RSI had failed to move above 40 levels which suggest weakness in prices. While for gold it is hovering near 40 levels indicating indecision. The outlook for silver remains bearish and we expect prices to test 38,600 levels while 29,430 to be tested in gold prices in today’s session.
Crude oil prices have given gap down opening in the previous session while the momentum indicator, RSI has moved below 40 levels. 3,385 stands as the immediate resistance for prices, while an hourly close below 3,300 levels could drift prices further lower towards 3,230 levels. The favored view remains bearish. Natural gas remained under pressure in the previous session however, it gave a close near its support level of 190 below which we expect prices to fall further towards 185 levels.
Base Metals View
We saw a sharp rally in metal prices where zinc and lead were up by more than 4% followed by aluminum, nickel, and copper which were 2%, 1.5%, and 0.5% respectively. Copper prices are facing the resistance of its previous intermediate high of 432 levels above, which we might see prices heading higher towards 435/438 levels.