Oil prices fell 1 per cent to $82.33 amid easing supply disruption concerns from Gaza ceasefire hopes and Hurricane Beryl’s impact
Neha Qureshi Mumbai
Oil prices fell 1 per cent to $82.33 amid easing supply disruption concerns from Gaza ceasefire hopes and Hurricane Beryl’s impact. Recent weeks saw prices spike to late April highs as managers bet on increased Brent demand and lower summer stockpiles. US drilling rig counts dropped significantly, down 6 per cent in 10 weeks, marking a notable shift in activity.
On the daily timeframe, MCX Crude Oil July futures are trading within a symmetrical triangle pattern and encountering resistance at the upper band. A bearish candlestick pattern has formed, indicating bearish sentiments. The RSI is showing negative divergence, suggesting underlying weakness. Resistance levels are around 6920 and 7052, while support levels are at 6740 and 6660.
Intraday Trading Strategy:
– Sell MCX CRUDE OIL July futures at Rs 6900 with a stop loss of Rs 7052 and a price target of Rs 6740.
Gold Outlook
Gold traded steadily amid a weaker US Dollar and profit booking, with support from expectations of a Fed rate cut in September post-soft US employment data. Political uncertainties in France and Middle East tensions also bolstered Gold as a safe-haven asset. Earlier, prices dipped due to China’s PBoC not buying Gold for a second month. Focus now shifts to Fed Chair Powell’s testimony and US CPI data later in the week.
Tech View
On the daily chart, MCX Gold August futures experienced a breakout from its symmetrical triangle pattern but failed to maintain the breakout, resulting in a pullback. Currently, the price is trading near the breakout level. Sustaining above 72,600 would indicate a bullish movement. The price is trading above its 21 EMA, reflecting bullish sentiments. Resistance levels are around 73,068 and 73,400, while support levels are at 72,072 and 71,600.
Intraday Trading Strategy
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(Disclaimer: NEHA QURESHI is a Senior Manager for Technical Research Analyst (Commodities & Currency) at Anand Rathi. Views are her own.)