Commodity Technical Report september 07 ,2015 - Emkay Commotrade

By  Paul Ploumis 07 Sep 2015  Last updated at  08:18:22 GMT

Trade Strategies

Daily Commodity Technical

Gold –Daily Chart

 Gold: We expect Gold to trade with a negative bias until prices stay below 26750 levels. Until prices stay below this level intraday rallies towards 26650-26700 areas will face selling pressure and the counter will drift lower towards 26400. A break below 26400 will see prices drift towards 26200 levels On a broader note, the counter is consolidating in a broad range between 27000 to 26100 levels.

Silver –Daily Chart

 Silver: Dec. Silver prices continue to grind in a narrow range. Any major upside momentum is likely only above 36000 levels. Until then traders can look to sell into intraday rallies towards 35750-35800 zones. Weakness from current levels will see prices test support around 35150-35000 levels. Any major correction is likely only on a decisive break below 34800 levels.

Crude –Daily Chart

 Crude Oil (Rs/Bbl): Crude oil prices are now consolidating between 3040-3200 levels. We expect the counter to be sideways for the upcoming few sessions. Failure to break below 3040 will see prices rebound towards 3120/3148 levels. Rallies towards 3180-3200 will face selling pressure. The up move will resume once prices break above 3270 levels decisively. A break below 3040 will see prices dip towards 2980/2940 levels.

Natural Gas –Daily Chart

 Natural Gas (Rs./Mmbtu): Natural Gas prices continue to be range bound. Failure to sustain above 180 will see prices drift lower and test 178/177 levels Reversals from lower levels can be used by traders to go long. The broad trading range for the counter is seen between 182 to 175 levels

Copper –Daily Chart

  Copper: Nov. Copper prices have opened on a positive note and the counter is trading with a gain of 1.70% currently. Sustenance above 355 will see prices rally further and test 357/358 levels. Some selling can be seen at higher levels which will drag prices lower. The intraday view though, will remain positive until prices stay above 350 levels. A break below this support will lead to a sharp dip towards 345.50 levels.

Zinc –Daily Chart

 Zinc: Failure to sustain above 121 will see zinc prices slip lower towards 119.80/119.25 levels as the session progresses. Prices need to sustain above 121 to rally towards major resistance between 122-122.25 zones. Any major fall in the counter is likely only on a break below 119 levels until then we expect the counter to consolidate between 122.25-119 levels.

Lead: Lead prices closed down with a cut of 1.81% yesterday. Failure to sustain above 112.50 will see prices correct towards 111.50/111.30 levels again. Weakness at higher levels can be sold into by day traders. The view for Lead will remain negative until prices stay below 113.75 levels. A break below 111 will see prices correct further towards 109.50 levels.

Nickel: Nickel prices have managed to rebound after testing its support zones between 655-650. Sustenance above 668 will see prices rebound towards 675 levels. We expect the counter to be range bound until prices hold on above 650 on dips. Major resistance is seen around 685 levels.

Aluminium: Aluminium prices are consolidating around 108 levels. Failure to break above 108.60 will see prices dip towards 107/106.60 levels. The rally will resume once prices move above 108.60. Prices can test 109.50 levels in that case.

Courtesy : Emkay Commotrade

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