[Base Metal] Commodity Technical Report 07 August,2015 - Emkay Commotrade

By  Paul Ploumis 07 Aug 2015  Last updated at  07:24:41 GMT

Lead: Aug. Lead prices are trading down with a cut of 1% currently. Prices can test its immediate support around 107.30/107 levels. Failure to break below 107 will see prices rebound towards 109/109.50 levels. A daily close below 107 will open up downside targets of 105.80/105 levels for lead. Weakness after intraday rallies towards 108.601108.93 can be sold into by day traders.

Trade Strategies

Commodity Trading Strategies for the day

Daily Commodity Technical

Gold –Daily Chart

Gold: Oct. Gold prices held on to supports between 24700-24650 areas and the counter has rallied to hit an intraday high of 24943 levels today. The intraday view will be positive until prices hold on above 24800 levels. Momentum above 24950 will take prices higher towards 25150/25250 levels. Any major fall in the counter is likely only on a break below 24650 levels.

Silver –Daily Chart

Silver: Silver prices have managed to hold on to its multiple support zones between 33400-33300 levels and rebound towards 33942 levels Failure to break below 33600 on dips will see prices move higher towards resistance areas between 34175-34360 levels. A break below 33600 will see prices move back towards support levels. A daily close below 33300 will be bearish for the counter.

Crude –Daily Chart

Crude Oil (Rs/Bbl): Crude oil prices hit a fresh swing low of 2826 levels yesterday. Failure to break below 2840 will see prices rebound and test resistance around 2915-2925 levels. Sustenance below 2840 will see prices drift towards 2800 levels. A daily close below 2800 will see prices weaken further towards 2760/2730 levels. The counter needs a daily close above 2930 for a reversal.

Natural Gas –Daily Chart

Natural Gas (Rs./Mmbtu): Natural gas prices moved higher post the inventory data. The counter needs to sustain above 183 levels to advance towards 185/186.50 levels. Failure to do so will see prices retrace towards 177.50/177 levels again. Any major breakdown in the counter is likely only on a break below 174.50 levels.

Copper –Daily Chart

Copper: Copper prices opened on a negative note and prices hit an fresh swing low of 327.30 levels today. The intraday view for the counter will remain negative until prices stay below 334 levels. Until then, rallies will face resistance between 332-333.50 areas. A daily close below 330 will be negative for the copper. Major resistance for the counter is placed at 337.

Zinc –Daily Chart

Zinc: Zinc prices have hit its downside targets of 118 levels mentioned in our previous report. We expect the counter to remain weak until prices approach 116/115.50 levels. Intraday pullback rallies towards 119.50-120 zones will face selling. Major resistance for the counter is now see around 121 levels

Lead: Aug. Lead prices are trading down with a cut of 1% currently. Prices can test its immediate support around 107.30/107 levels. Failure to break below 107 will see prices rebound towards 109/109.50 levels. A daily close below 107 will open up downside targets of 105.80/105 levels for lead. Weakness after intraday rallies towards 108.601108.93 can be sold into by day traders.

Nickel: Aug. nickel prices are trading around the lower end of its trading range. We reiterate our negative outlook for the counter until prices stay below 705.50 levels. Failure to trade above 696 levels convincingly today will see prices eventually move lower towards 682.50/680 levels . Sustenance above 696 will see prices rebound towards 702.50/705 levels again.

Aluminium: Aug. aluminium prices hit fresh swing low of 99.70 levels yesterday. Rallies from lower levels will face resistance around 100.90-101.25 zones. Failure to trade above this level will see prices continue to weaken and test next major supports areas around 98/97.50 levels. The outlook will remain negative until prices stay below 102.50 on closing basis.