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Published on 11/05/2020 12:59:27 PM | Source: ICICI Direct

We expect prices to extend pull back towards mid-April swing high of $33 which is a key hurdle in the near term - ICICI Direct

Posted in Top Stories| #Commodity Tips #ICICI Direct

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Gold ($1702) : Consolidation in the range of $1600-$1750 likely

Technical Observations

* Gold prices ended unchanged for the weekly as trading volumes take hit led by weak Indian demand and restart of south African mines easing supply worries. Gold spot prices closed the week at $1702

* The weekly price action formed an inside day bar for second week indicating extended breather near key hurdle of $1750 after a sharp rally during March 2020

* Going forward, only a decisive break above $1750 will accelerate further rally, else consolidation in the range of $1750-1600 is likely

* Key hurdle is placed at $1750 as it is 80% retracement of entire 2011- 2017 decline ($1920-1046), while key support is placed at $1600, being last five weeks lows

 

Brent crude ($30.9): Pull back to extend towards $33

Technical Observations

* Brent oil futures recorded second weekly gain as optimism around production cuts weighed on prices. Brent futures settled 17% higher at $ 30.90

* The weekly price action formed higher high-low as price extended pull back from oversold conditions

* We expect prices to extend pull back towards mid-April swing high of $33 which is a key hurdle in the near term

* The support is elevated towards last week’s low of $25.50

 

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