Gold is showing signs of breakout on the weekly timeframe currently price is defending around the 1300 reference levels. Sentiment is positive across the timeframes. 1300 is more likely to be the short term key resistance levels. However overall structure of the trend is holding positive and the breakout is imminent.
MCX Copper June futures on last Friday slipped down below 200MA on both daily(366.8) and hourly(366.7) charts. However around the market close, managed to close above 200MA on both the timeframes it is a short term bullish setup as responsive buyers shown support on Friday low around the 361 mark.
Both Short term (Daily Sentiment) and Very Short term sentiment (Hourly) in MCX Crude holds down. Sideways action is expected with a possible test towards 3170. However any sustainable move coming above 3213 indicates resume of short term trend up that is more likely to keep the trend strong in the very short term.
MCX Crude taken short term support at 3119 and bounced back on the hourly charts. Potential medium term supports around 2900. Nymex crude futures is also currently trading around the psychological reference 50 USD/Barrel. However on the daily timeframe price rejection around 200 MA 3316 and started pulling back down and the daily sentiment holds down.
Global commodities are taking the blood bath as Bloomberg #Commodity Index is down 8%(approx) since the mid of February 2017. So Metals and metals related stocks are taking a hit in the past few trading weeks. Copper Price often signals the strength of the global economy. Copper prices are currently trading around the pschological reference level 2.5$ and all momentum indicators are currently in a negative mode across daily, weekly and monthly timeframe.
Nymex Crude is showing a short term consolidation on the hourly timeframe with divergence witnessed when fisher transform is applied over the chart. Daily Trade Sentiment turned positive which could bring imminent short term up move.
In the last outlook we seen MCX Crudeoil – balancing behavior on the weekly and daily timeframe. Since then we had spent more time withing the balance. And now the is a significant change from the sentimental point of view as both daily and weekly sentiment turning down which brings us bias towards the breakdown from the bottom of the balance – 3500 zone.
On the Monthly Charts MCX CrudeOil Maintains uptrend and also broken out of the consolidation zone 3475 zone and sustained above the reference zone. However lower timeframes indicates a tired and weaker market.
MCX Goldon the monthly charts consolidating for the last for the 5 years in the band of Rs25000 – 32200 per 10 gram. Sentiment on the monthly charts suggests the long term sentiment is reversed to the negative bias and posied towards the lower end of the balance Rs25000 w- longer term trend which is expected to happen around 3-4 months duration.
In the closing days of November, the Daily Sentiment Index registered a ten-day average of just 9.1% gold bulls. That was only the third time in the sentiment gauge’s 30-year history that such a low bullish reading was recorded.
Last week’s shocking spike in crude oil prices is +12% and counting, the biggest one-week gain in five years. Media stories blame one culprit: the November 30 OPEC agreement to cut production.
Bullish sentiment among silver traders recently fell to 8 percent, the lowest reading since mid-2015. So, sentiment is in the right place for the next big leg in the price pattern.