Commodity News Letter For Monday
Gold pared some of its gains as data showing the biggest pick-up in U.S. consumer prices in 2-1/2 years lifted the dollar and U.S. Treasury yields. Federal Reserve Chair Janet Yellen advocated lifting U.S. interest rates gradually. The U.S. central bank should be able to raise rates “in a gradual and patient manner,” Dallas Fed President Robert Kaplan said. We saw a good selling from the handle of 28000, which further lead to 27200. A sharp downside was seen on charting, for the coming days we are expecting the prices to approach 26500 levels where profit booking will take place and below this handle some fresh selling can take place for levels. Looking for upside 29000 will be immediate resistance.
Silver prices steadied as investors awaited a speech from Federal Reserve Chair Janet Yellen for fresh clues about the timing of the next rate hike U.S. Commerce Department said that consumer prices gained 0.3% in December, in line with expectations. Fed’s latest Beige Book pointed to a jump in manufacturing and tight labor markets showing U.S. economic health. Silver price returns to rise after the temporary decline that appeared yesterday, to approach from testing the correctional bearish channel’s resistance again, as the EMA50 managed to protect the price from suffering more losses, motivating the price to continue the main bearish trend, which 40300 targets levels initially.
Crude oil dropped after the head of the International Energy Agency predicted a “significant” boost to U.S. output Sentiment in oil markets has been torn between expectations of a rebound in U.S. shale production and hopes that oversupply may be curbed. The IEA (International Energy Agency) said it expects higher oil prices to trigger a significant boost in U.S. shale output. Crude oil price did not show any strong move yesterday, to remain stable at the minor bullish channel’s support keeping its stability above it, which keeps the bullish trend scenario valid until now, and the price needs for more positive momentum to confirm resuming the bullish wave that its next target located at 3830.
Copper gained to hold 401 levels on uncertainty over Trump’s policies which sent the dollar to a 1-1/2 month low. China’s Lunar New Year holiday, starting Jan. 27, is expected to subdue metals demand as Chinese factories close, for two to three weeks. The Copper is in perfect uptrend. Currently Copper is in strong uptrend and the trend is supported with good volume. The open interest is not increasing with trend. Cautious point is buying at higher levels seems decreasing. The oscillator is on sell signal and Copper is coming down from overbought level for short term Copper is in hold long position. Positional Support for the Copper is 380. Immediate resistance for Copper is 411.
Zinc prices gained tracking LME prices closed up 0.8 percent at $2,790 a tonne buoyed by dollar weakness. The Zinc is in perfect uptrend. Currently Zinc is in strong uptrend and the trend is supported with good volume the open interest is not increasing with trend. Cautious point is buying at higher levels seems decreasing. The Zinc is now trading in overbought level. The Zinc is now trading in overbought level. The oscillator is showing buy signal for short term Zinc is in hold long position. Positional Support for the Zinc is 178. Immediate resistance for Zinc is 193.
Currently Lead is in Hold Long position. The Lead is not giving any clear signal. So, buy only if close above 163.65 and sell below 151.50. The Lead is now trading in highly overbought level. The oscillator is showing BUY signal.
The Nickel is in perfect downtrend. The oscillator is on SELL signal and Nickel is coming down from overbought level .In last 1 month volatility is very less and fresh sell can be considered in the Nickel if it close above 645.10 or sell with strict stop at 706. The oscillator is on SELL signal and Nickel is coming down from overbought level for short term the current position is sell .Position ally Support for the Nickel is 630 immediate resistances for Nickel is 706.
The Aluminum is in perfect uptrend. Currently Aluminum is in strong uptrend and the trend is supported with good volume the open interest is not increasing with trend. The oscillator is showing buy signal for short term but the current position is bullish. Positional Support for the Aluminum is 120. Immediate resistance for Aluminum is 129.
GOLD 28860 27970
SILVER 41950 40340
CRUDE 3750 3420
COPPER 411 380
LEAD 164 151.10
NICKEL 706 630
ALUMINIUM 129 120
ZINC 193 178