[Base Metal]Commodity Technical Report 31 July, 2015 - Emkay Commotrade

By Paul Ploumis 31 Jul 2015 Last updated at 08:52:46 GMT

Trade Strategies

Commodity Trading Strategies for the day

Commodity      Strategy   Levels       Target      Stop-Loss

Crude oil – Aug         Buy  3055—3040     3125         2999

Natural gas – Aug    Sell   180.60—181    177  183.10

Daily Commodity Technical

Gold: Gold prices have opened with a negative gap and prices are trading down with a cut of 0.60%. Further weakness from current levels will see prices slide lower towards 24450 levels A daily close below 24400 will see prices slide towards 24000 levels. Upside resistance is seen around 24800-24850 areas.

Silver: Silver prices will continue to be range bound until prices break out above 34500 or break down below 33300 levels. Until then, intraday dips will find support between 33550/33300 levels Upside looks capped to around 34150/34200 levels.

Crude Oil (Rs/Bbl): Crude oil prices remained in a narrow range throughout yesterday's session. The counter though has opened with a negative gap and prices are trading around supports at 3050. Failure to break below 3050-3040 areas will see prices rebound towards 3110/3125 levels by close Major support is seen around 3000 levels.

Natural Gas (Rs./Mmbtu): Natural gas prices moved lower post the inventory data and the counter closed down with a cut of 2.56% yesterday. The counter can rebound towards 181-181.50 zones. Selling can be seen as prices approach higher levels. We expect prices to test 177 levels. A close below 177 will see prices correct toward major support around 175.

Copper: Copper prices are trading down with a cut of 0.50% currently. Weakness from current levels will see prices head lower towards 335.50/334 levels. The intraday view for the copper will remain negative until prices stay below 340 levels A breakout above 340 will see prices rally towards 344 levels. A close below 334 will see prices head lower towards 332 levels.

Zinc: Aug. Zinc prices are trading around its immediate support around 125 levels. Resistance for the counter is seen around 126-126.25 levels. Sustenance above 125.50 will see prices advance towards this resistance levels. Failure to break below 124.50 will see prices remain range bound.

Lead: Aug. Lead prices are moving in a side ways range between 111.90 to 109.35 levels. Any major reversal in the counter is likely only on a breakout above 112 levels on a closing basis. Until then rallies towards 111/111.50 levels will face selling pressure. A daily close below 109.35 will open up downside targets of 108/107.50 levels in the counter.

Nickel: Aug. nickel prices can slip lower and test its support around 702 levels. If prices hold on to support between 705-702 levels then a pullback rally towards 715/718 levels is likely. A daily close below 700 will open up downside targets of 680/675 levels in the counter. Any major reversal in trend is likely only on a break above 720 levels.

Aluminium: Aug. aluminium prices are trading around its crucial supports around 103.80-103.50 zones Failure to break below this support will see prices rebound towards 104.651105 levels today. A daily dose below 103.50 will be negative for the counter and prices will correct further towards 102/101.50.

Courtesy : Emkay Commotrade