Major MCX Commodities this week’s trend
By analyzing the daily technical chart we can see that MCX gold has entered the very narrow range and we can see that tug of war is going on between bulls and bears. Gold is unable to move on either side as we can see that every trading session is getting choppy.
47950 and 48900 is the strict range of trading where we need a valid breakout on either side with a daily closing that will give us a new Buy or Sell signal. The short-term trend has become range bound so traders are advised to be cautious for the position as we may see many traps and false breakout at both sides and positional traders are advised to wait for the right time.
The MACD lines are providing us a bullish signal line and RSI is also trading above 50, so both the indicators are generating bullish signals.
Now, what to expect?
Gold has its support at 47950 and Resistance at 48900.
Break and sustain above 48900 will take it to 49500 .closing above 49500 on the daily closing frame could give a sharp upside rally till 50000-50500++ level in the coming days.
Fresh selling will do in closing below 47950
Trade with the levels only.
Base Metals – Zinc
Bears are controlling Zinc and taking it to the south side where only selling can be seen and every bullish attempt is dominated by the bears. Well, bears are playing at the front foot and are leading in the game. Recently sellers have breached very strong support level of 229.50 level which was the last hope of bulls.
Now we may witnessed that bears are testing the depth of the river and further selling pressure is still awaited. RSI has turned down so we may see some selling pressure in the zinc. A bearish crossover on the MACD indicator is also providing us a bearish signal.
Now, what to expect?
Zinc has its support at 229.50 and Resistance at 237.
Trade Idea:- Based on the chart and study below we can suggest going for Sell in Zinc at current levels 229.50 for the targets of 224 and 220 stop loss is 237.
Energy – Natural Gas
By having a first look only bears are visible or we can say that a red blood bath is going on full of bearish momentum. The bears got the charge from 231.50 level to 212 level and still they have full control of the game and heading towards the south side.
Well, the way bears are reacting it seems like they are doing a mind-blowing job for the time being and recently they have given us a fabulous breakout of a horizontal line.
Sellers are leading in the game for the past couple of days and they made a fabulous counterattack from the 212 level. A bearish crossover on the MACD indicator is generating a bearish signal for the time being and RSI is also favoring the bears for the time being.
Now, What’s next??
MCX Natural Gas has its support at 211.50 and resistance at 220.
Trade Idea:- Based on the chart and study given above, we can suggest to go for selling at current levels 211.50 for the targets of 205 and 200,m Support and Stop loss would be 220.
Trade with levels only.
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