Commodity Technical Report september 10,2015 - Emkay Commotrade

By  Paul Ploumis 10 Sep 2015  Last updated at  09:00:38 GMT

Trade Strategies

Daily Commodity Technical

Gold –Daily Chart

 Gold: Gold prices eventually broke below its immediate support at 26200 and the counter closed at 26057 levels with a cut of 1.39% yesterday. Intraday pullback rallies will now face resistance between 26240-26300 levels. Sustenance below 26000 will see prices weaken towards 25750/25700 levels. Prices need to breakout above 26500 for a reversal.

Silver –Daily Chart

 Silver: Dec. Silver prices closed lower after hitting a high of 35988 levels yesterday. Areas between 35800 up to 36000 are strong resistance zones for the counter. Silver need to breakout and close above these supply areas for a reversal. Failure to sustain at higher levels will see prices dip towards the lower end of the trading range at 35000-34800 levels again.

 Crude –Daily Chart

 Crude Oil (Rs/Bbl): Crude oil prices are consolidating in a range between 2900 to 3095 levels over the past 2-3 sessions of trade. Failure to break and sustain below 2880 will see prices take support between 2880-2950 and move higher towards 3100 levels. A daily close above 3100 will see prices rebound towards 3150/3213 levels Traders holding long positions should maintain a stop loss below 2880 on their positions.

 Natural Gas –Daily Chart

 Natural Gas (Rs./Mmbtu): Natural Gas prices closed down with a cut of 2.48% yesterday. Prices though continue to be range bound between 182 to 175.40 levels. Failure to sustain above 180 will see prices dip towards 176/175.50 levels. A decisive break below 175 will see prices correct towards 174 levels. Any major upside is possible only once prices breakout above 182 levels decisively.

 Copper –Daily Chart

 Copper: Nov. Copper prices have opened on a positive note and the counter has hit a fresh swing high of 368 levels. Immediate upside target for the counter is seen around 370 levels. Fresh selling can be seen as prices approach these levels. Intraday dips towards 365-364 zone should be used by traders to go long. The outlook for copper will remain positive until prices hold on above 361 levels.

Zinc –Daily Chart

 Zinc: Momentum above 122 will see zinc prices re-test 122.70 levels Areas between 122.50-122.70 are strong supply zones for the counter. The counter need to sustain above these levels to advance higher towards 123.401123.95 levels on the upside. Weakness at higher levels will see prices slip towards 121/120.50 levels

Lead: Lead prices can move higher towards resistance at 116.25 levels. Supply can be seen as prices approach higher levels. Any major downside in the counter is likely only below 113.50 levels. A daily close above 116.50 will see prices move towards 118/119 levels

Nickel: Nickel prices have broken out above its trading range and the counter is trading with a gain of 3.64% currently. Further upside is likely only if prices sustain above 700 levels. Prices can rally towards 715 levels in that case. Intraday corrections towards 685-680 levels should be used by traders to go long in the counter.

Aluminium: Aluminium prices couldn't sustain at its intraday highs at 109.75 levels yesterday. Prices need to sustain above 109 to rebound back towards 109.501109.75 levels. Failure to trade above 109 will see prices drift lower towards 107.80/107.30 levels Areas between 109.75-110.25 are strong supply zones for the counter.

Courtesy : Emkay Commotrade

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