Oil Prices Fall Amid Supply Disruption Concerns
Oil prices dropped by 1% to $82.33 as supply disruption fears eased due to hopes of a ceasefire in Gaza and the impact of Hurricane Beryl. The recent surge in prices to late April levels was driven by increased Brent demand and lower summer stockpiles, as reflected in managers’ bets. Additionally, US drilling rig counts saw a significant 6% decline over 10 weeks, signaling a noteworthy shift in activity.
Tech View on MCX Crude Oil July Futures
Analyzing the daily timeframe, MCX Crude Oil July futures are currently trading within a symmetrical triangle pattern, with resistance at the upper band. A bearish candlestick pattern has emerged, indicating bearish sentiments. The RSI is demonstrating negative divergence, suggesting underlying weakness. Key resistance levels are identified at 6920 and 7052, while support levels are seen at 6740 and 6660.
Intraday Trading Strategy for MCX CRUDE OIL July Futures
Traders may consider selling MCX CRUDE OIL July futures at Rs 6900, setting a stop loss at Rs 7052, and targeting a price of Rs 6740.
Gold Outlook and Technical Analysis
Gold prices remained steady amid a weaker US Dollar and profit booking, supported by expectations of a Fed rate cut in September following soft US employment data. Geopolitical uncertainties in France and the Middle East further boosted Gold as a safe-haven asset. However, earlier price dips were observed when China’s PBoC refrained from purchasing Gold for a second consecutive month. Attention is now drawn to Fed Chair Powell’s testimony and US CPI data later in the week.
On the daily chart, MCX Gold August futures recently broke out of a symmetrical triangle pattern but failed to sustain the breakout, leading to a pullback. Currently, the price is hovering near the breakout level. A move above 72,600 would indicate a bullish trend, with the price already trading above its 21 EMA, reflecting bullish sentiments. Resistance levels are at 73,068 and 73,400, while support levels lie at 72,072 and 71,600.
Intraday Trading Strategy for MCX AUGUST Gold Futures
Traders might consider buying MCX AUGUST Gold futures at Rs 72,300, with a stop loss at Rs 71,900, and a target price of Rs 73,000.
Additional Insight
The recent fluctuations in oil prices highlight the continued impact of geopolitical events and weather disruptions on global oil supply. Traders should monitor these factors closely while formulating their trading strategies. Additionally, the technical analysis of both Crude Oil and Gold futures provides valuable insights into potential price movements, enabling traders to make informed decisions based on market trends and indicators.
