The precious metal had a perfect take-off in initial days this week as the fundamental development due to lower Non-farm payrolls last week, decline in Manufacturing Purchasing Managers Index that collects the data related to New Orders, Backlog Orders and Customer Deliveries to 52.1 from 52.8 in April as they both act as a catalyst for Federal Reserve’s decision and formation of Rounded Bottom on daily chart thrust the yellow metal to a high of 33,356 levels but flat numbers from Core Retail sales data, which were in line with estimates reported on Friday halted the precious metal’s rally and sellers got activated after the counter slipped below 33,200 levels and MACD gave a bearish crossover on hourly chart.
On daily scale, MCX Gold has formed a ‘Shooting Star’ candle stick pattern that has a small body with long shadow on upside that possesses medium reliability. Next week we are expecting the continuation of bullish trend as the breakout of ‘Rounded Bottom’, closing above the psychological support of 33,000 levels would thrust the precious metal to a level of 33,750 levels. RSI is trading near 68.53 showing no signs of divergence and overbought situation. MACD is continued with bullish crossover. But a slippage below 32,980 could activate the ‘Shooting Star’ and sellers will increase in the counter.
MCX Crude Oil
MCX Crude Oil remained in a narrow range of 3536-3797 levels previous week as tanker explosions in Gulf of Oman was enough to counterpoise the galloping crude oil inventories reported as Energy Information Administration came with 3.5 million barrels of stockpiles ending June 07, 2019. The black gold started the week on a negative note as General Administration of Customs reported China’s crude imports fall to 40.23 million tonnes or 11% in May but the tanker attacks near Iran activated the formation of ‘Bullish Divergence formed on hourly chart and the black gold prices accelerated to a level of 3,797 levels.
Net week, we are expecting that crude oil will remain on tenterhooks as no major supply disruption has been witnessed after the attack on tanks in Iran and galloping crude inventories in U.S. and falling demand concerns in China will continue to pressure on black gold but the formation of ‘Double Bottom’ pattern could counter the pressure. On daily scale, Bollinger Bands have shown lower weakness while re-test of the previous lows and Bollinger Bands %b is trading above one.
MCX Natural Gas
MCX Natural Gas futures has traded in a narrow range of 160.20-167.85 levels last week. The counter had a positive opening this week but dragged lower after the formation of ‘Three Rising Methods’ on daily scale. On June 13, 2019, the Energy Information Administration came up with a total storage of 2,088 billion cubic feet in which stockpiles of 102 billion cubic feet added, smaller than expected by the think tanks of the market that ignited the natural gas futures prices and closed at 167 levels.
On daily scale, Natural Gas futures has formed a ‘Bullish Engulfing’ candle stick pattern that have a long bull body enough to cover previous candle. Next week, we are expecting a break out above the psychological resistance of 170 levels could thrust the natural gas prices higher. RSI is closed above its strong support of 40 while Stochastic oscillator has given a bullish crossover.