MCX Crude oil December is likely to hold the support near 5600 and rise towards 5900 - ICICI Direct
Bullion Outlook
• Spot gold is to expected to face the hurdle near $2600 and move lower towards $2530 amid strong US dollar and shift in Fed rate- cut expectations. Hawkish comments from the Fed members and declining probability of more rate cuts in the coming year would restrict upside in bullions. Meanwhile , escalating geopolitical tension and risk off sentiments could provide some support to the bullions. Now, focus will remain on speech from the Fed members which could bring further volatility in price.
• Breakdown of rising trend channel and key support level at $2600 would limit its upside. On the downside 100 day EMA at $2530 would act as key support to prices. MCX Gold December is expected to face the hurdle near 74400 and decline towards 73,500.
• Spot Silver is likely to face the resistance near $30.80 and move towards $29.70. MCX Silver is expected to move towards 87,000, as long as it remains under 90,000.
Base Metal Outlook
• Copper prices are expected remain under pressure amid strong dollar and persistent demand concerns from China. Meanwhile, hopes of fresh round of stimulus from China and latest measures could help the metal to limit its losses. However, growing speculation over new tariff policies from US and declining probability of more rate cuts would weigh on the metal prices.
• MCX Copper November is expected to face the hurdle near 816 and move lower towards 790. Only below 790, it would weaken further towards 785.
• MCX Aluminum Nov is expected to move towards 238, as long as it trades under 248. Higher inventory levels and increasing supplies from China would restrict its upside.
Energy Outlook
• NYMEX Crude oil is expected to hold the support near $66 and rebound towards $69 amid escalating geopolitical tension in the Middle East. Further, improvement in crack spread indicates demand growth of the by products, which could bring buyers back to the action. Meanwhile, demand concerns from China and strong dollar would limit its upside. On the data front strong put base near $65 would act as key support for price. On the upside a higher call base at $70 indicates strong resistance.
• MCX Crude oil December is likely to hold the support near 5600 and rise towards 5900. Only above 5900 it would rise towards 6000.
• Natural gas November is expected to hold above 233 and move higher towards 250. A reduced drilling activity and forecast of colder weather would provide support to price.
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