As weakness in the dollar and equities continues to give a fillip to gold and silver rates, commodities such as gas, crude oil and coal are quoting near multi-year highs touched recently. Oil has once again reached $86 a barrel amid renewed demand for the whole energy pack amid the power crisis. Domestic fuel rates have soared to record levels in major cities. Are there any trading opportunities in commodities? Here are six technical bets analysts recommend in commodities such as gold, silver, zinc and nickel now from a short-term perspective.
Buy crude oil on dips: MCX crude oil futures are expected to continue the bullish momentum, giving traders a buy-on-dips opportunity around Rs 6,220-6,180 for a target of Rs 6,270-6,320 with a stop loss at Rs 6,160. The US WTI crude oil contract has extended recent gains, forming a series of bullish candles on the weekly chart. (Analyst: Kshitij Purohit, CapitalVia Global Research)
Buy nickel on dips: There may be a lucrative opportunity for traders in nickel. One can buy nickel futures on MCX on dips to around Rs 1,580 for a target of Rs 1,680 with a stop loss at Rs 1,520. (Analyst: Manoj Kumar Jain, Prithvi Finmart)
Buy gold: The December contract on MCX looks attractive from a one-month view. Traders can look to buy around Rs 47,200 for a target of Rs 48,500 with a stop loss at Rs 46,600. (Analyst: Ajay Kedia, Kedia Advisory)
Buy natural gas on dips: MCX natural gas futures are expected to continue their sideways-to-upside move. Natural gas rates have resumed their upward journey after bouncing from key support near the 50-day moving average, placed near $4.9/mmbtu. Traders can look out for a buy-on-dips opportunity around Rs 380 for a target of Rs 400 with a stop loss at Rs 377. (Analyst: Kshitij Purohit, CapitalVia Global Research)
Buy zinc on dips: MCX zinc futures are likely to hold on to the support line. The contract is approaching a high of Rs 325, having formed a rising channel pattern like other base metals. Immediate support is expected at the 15-day exponential moving average near Rs 307.9 on the intraday chart. Resistance is placed near Rs 330. One can buy on dips at Rs 294.5-295 for a target of Rs 301.1-302.2 with a stop loss at Rs 290. (Analyst: Kshitij Purohit, CapitalVia Global Research)
Buy silver: There may be an opportunity for traders in silver futures from a one-month perspective. One can look at buying the December contract on MCX at Rs 65,200 for a target price of Rs 68,000 with a stop loss at Rs 63,500. (Analyst: Ajay Kedia, Kedia Advisory)