Crude and Silver buy signal in the week ended 22nd Nov, 2024

Crude oil closed higher forming a Bullish Engulfing candle on the weekly chart last week after giving a sell signal in the prior week. Thus the candle for the week was also representative of a sell failure, a powerful signal to go north because it has the trap effect of catching the bears on the wrong foot. A close above USD 72.5, the immediate resistance, would reaffirm the bullishness. Weekly chart below.

Weekly Chart of WTI Crude Oil - Bullish Engulfing of a sell signal in the prior week

Similarly, silver has formed a Bullish Engulfing candle right at support at USD 30.13 provided by the previous pivot. There is strong overhead resistance at USD 31.75 to 32 levels from where the price broke upwards about 5 weeks back. Though the formation is bullish, it remains to be seen how the price action responds to the overhead resistance in the coming weeks. Weekly chart below.

Weekly Chart of Silver - Bullish Engulfing at strong support

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