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Commodities Technical Outlook for Today – October 5

Bullions View  

As mentioned in yesterday’s market outlook, Bullions drifted lower and gave a close near its day low in the domestic market. We saw initially prices gave a gap up opening while it fell down as the day progressed. The momentum indicator, RSI on hourly charts remained below 40 mark suggesting a lack of momentum in prices. We saw an extended fall in gold as it has broken its support of 29,450 levels. For now, as long as 29,450 is capped on higher side on the daily closing basis, prices to remain under pressure as we can see prices drifting towards 29,250 levels. Silver can drift lower towards 38,600 levels.

Energy View    

Crude oil prices gave a gap down opening in yesterday’s trading session and gave a close on a negative note. Immediate support lies near 3,235 levels which is likely to be tested in today’s session as prices have gone into correction phase where RSI reading is below 40 levels. Breach of mentioned support could drift prices further lower under 3,200 mark. For natural gas, we had mentioned that prices are trading above its crucial support of 190, in the last session it had bounced back from the mentioned support level and gave a close near its day high indicating chances of a rebound in today’s session, however, today we have a Natural gas storage data which needs to be watched out carefully as breach of 190 could negate the bullish stance.

Base Metals View 

We saw some profit booking in base metals where Lead was the weakest among other metals followed by Nickel, Copper and Zinc while Aluminium manages to give a positive close. Copper had given a close below its uptrend line support level of 428 which suggests sustaining below the mentioned level could drift prices further lower towards 424/422 levels. For Lead immediate support lies near 163.90 levels. Structure of Zinc remains strong till it is trading above 214.20 levels while fall below 214.20 could drift prices towards 210 levels.