Commodities Technical Outlook for today
After a steep rally in crude oil prices, we have observed that the prices have given hourly close below its uptrend line support of 3,385, which was also its previous intermediate low. From the last week of August, Crude oil prices have been trading in a higher top higher bottom cycle. Now we expect some sort of profit booking in the prices as the open interest is falling, following a price peak at 3,475 levels. The momentum indicator, RSI has gone below 40 mark on hourly chart, which gives first confirmation of bearishness in prices. We expect prices to give a fall of at least Rs 100 to 150 and the current market price of MCX Crude oil is 3,370. However, a move above 3475 would negate the bullish stance.
Base Metals View
Base Metal pack remained volatile in the last session. Copper finally broke out of the trading range of 425 to 430 levels and rallied up to 433 levels. RSI on hourly chart is also above 60 indicating high momentum in prices. We expect prices to rally up till 435 levels. Other metals to open flat to negative as on LME we have seen some sort of profit booking. However, overall the trend remains bullish, the dip can be considered as buying opportunity.