Intraday trading strategy for gold, crude oil by Neha Qureshi of Anand Rathi

On the daily chart, MCX Gold for August is hovering near its trend line support. A break below 70,750 could signal bearish sentiments, the analyst said

CRUDE OIL PRICE OUTLOOK

Oil prices are facing downward pressure as global economic concerns mount. China's slowing demand and lackluster US manufacturing are contributing factors. OPEC and its allies are also signaling a potential increase in supply, which has been crucial in keeping prices up. 

Analysts predict a decline in oil price growth over the next six months, citing indicators tied to production and market futures. This outlook suggests a cautious approach to bullish oil market predictions beyond the summer.

On the daily chart, MCX Crude Oil for July is currently consolidating, trading sideways within a range of Rs 6700 to Rs 6840. A break below Rs 6700 would signal bearish sentiment.

The Relative Strength Index (RSI) is showing negative divergence, suggesting weakness in the current trend. Resistance levels are seen at Rs 6840 and Rs 6960, while support levels are around Rs 6700 and Rs 6550.

 

Intraday Trading Strategy  

– Sell MCX July Crudeoil futures at Rs 6700 with a stop loss of Rs 6780 and a price target of Rs 6550

GOLD PRICE OUTLOOK

Gold prices rose 0.7 per cent to $2,314.89 per ounce ahead of key US economic data influencing Federal Reserve interest rate decisions. Solid demand bolstered prices despite dipping below $2,300 recently.

Fed officials, expecting fewer rate cuts this year amid inflation concerns raised by Governor Michelle Bowman, tempered market expectations. Geopolitical tensions and strong demand from central banks and Chinese buyers have driven gold's 12 per cent increase this year.

On the daily chart, MCX Gold for August is hovering near its trend line support. A break below 70,750 could signal bearish sentiments. 

Currently, it is trading below both its 21-day and 50-day exponential moving averages (EMA), suggesting weakness in the market. Resistance levels are seen around 71,500 and 71,900, while support levels are at 70,750 and 70,082.

Intraday Trading Strategy

– Sell MCX Aug Gold futures at Rs 70750 with a stop loss of Rs 71300 and a price target of Rs 70100


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Disclaimer: NEHA QURESHI is Senior Manager for Technical Research Analyst (Commodities & Currency) at Anand Rathi. Views are her own.