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Crude Oil Outlook
Crude oil prices rose on Monday, with WTI Crude futures up 2.3 per cent to $83.38 a barrel. The increase was driven by OPEC’s slight production decline in June and China’s better-than-expected manufacturing activity. Additionally, geopolitical tensions in the Middle East and Russia, along with a falling dollar, contributed to the price gains.
Technically: On the daily timeframe, MCX Crude Oil for July is forming a higher high and higher low pattern, indicating bullish sentiments. A bullish candlestick pattern further supports this outlook.
Additionally, a positive crossover of the 21-day and 50-day EMAs suggests a positive trend. Key resistance levels are around 7,115 and 7,250, while support levels are at 6,920 and 6,860.
Intraday Trading Strategy
– Buy MCX July Crude Oil futures at Rs 6,950-7,000 with a stop loss of Rs 6,860 and a price target of Rs 7,250
Copper Outlook
Copper prices held steady after two days of gains as investors considered potential stimulus in China and possible interest rate cuts in the US. The metal rose from a two-month low due to optimism about China’s upcoming policy meeting and increased expectations for US rate cuts. Copper traded at $9,623.50 a ton on the LME, with other metals also seeing gains.
Technically: On the daily chart, MCX Copper for July is forming a lower high and lower low pattern, currently hovering near its support level. A break below 838 would indicate further bearish sentiments.
The price is trading below both the 21-day and 50-day EMAs, suggesting continued weakness. Resistance levels are around 855 and 863, while support levels are at 838 and 827.
Intraday Trading Strategy
– Sell MCX July Copper futures at Rs 843-838 with a stop loss of Rs 850 and a price target of Rs 827
(Neha Qureshi is a senior manager, technical research analyst of commodities & currency. Views expressed are her own.)
First Published: Jul 03 2024 | 6:22 AM IST