Comodity Intraday Calls

As we have rightly predicted in out last week report that Gold might bounce back till 20870 levels, it did that. Gold has pierced the 21200 lev-els , because of weak dollar and rising crude prices.

Commodity Snapshot - Gold: Technically speaking Gold prices are trading above the 5d EMA and breakout in its Ascending triangle also . But the MACD Histogram is showing an overbought condition. , and RSI has also touched its very strong resistance.

For the coming week , Monarch expects gold prices might fall down till 21200 levels with a very strong resistance at 21530.

As we have rightly predicted in out last week report that Gold might bounce back till 20870 levels, it did that. Gold has pierced the 21200 lev-els , because of weak dollar and rising crude prices.

Commodity Snapshot - Silver: Technically speaking , the prices are trading above its 5d EMA , which is showing the strength . But all the major price indicators are showing an extreme overbought condition. . RSI is trading above 86 levels . MACD is also showing the negative divergence.

For the coming week Monarch expects silver prices to cool down till 59200 levels with a very strong resistance at 61200.

As we have mentioned in our last report that crude might fall till 4680 lev-els , but it didn’t go into that way.

Commodity Snapshot - Crude Oil: Technically speaking prices are trading above its 5d EMA , which is showing the strength . From the chart we can notice that MACD is show-ing a negative divergence and OBV is also showing the same picture, which means volumes are not backing the rising price.

For the coming week Monarch expects crude prices to fall down till 4950-4880 lev-els with a very strong resistance at 5170 levels.

Commodity Snapshot - Silver: Silver prices are making higher highs , because of weak dollar. Technically speaking , RSI is trading above 92 levels , which consider as highly overbought condition. Commodity channel index is showing a negative divergence.

MACD is also in an highly overbought condition . But Silver is trading above the 5d EMA , which is the only matter of cautioun

For the coming week Monarch expect prices might bounce back till 70700 levels and after that Monarch expects a correction of 800 points i.e. till 69200 levels

Commodity Free Trial

Copper yesterday traded with the negative node and settled -1.16% down at 417 posting its biggest weekly loss since mid-March, as mounting inflationary pressure in China cast a shadow over the near-term demand outlook. Copper again shunned rallies in the precious metals complex, with gold and silver surging to record and 31-year highs, respectively, as investors bought both metals as a hedge against global inflation worries and rising oil prices. 

Chinese consumer price inflation sped to 5.4 percent in the year to March, the fastest since July 2008 and topping market forecasts of 5.2 percent. Gross domestic product in China, the world's top copper buyer, eased a touch. China accounts for about 40 percent of copper demand. In yesterday's trading session copper has touched the low of 416 after opening at 422.5, and finally settled at 417. For today's session market is looking to take support at 414.3, a break below could see a test of 411.7 and where as resistance is now likely to be seen at 421.3, a move above could see prices testing 425.7.

Trading Ideas:

Copper trading range is 411.7-425.7.

Copper fell as mounting inflationary pressure in China cast a shadow over demand.

Copper is taking resistance at 421.30 and support is seen at 414.30.

Copper weekly stocks at Shanghai exchange came down by 6578 tonnes.

Zinc yesterday we have seen that market has moved -1.09% as investors were worrying about that China will take additional tightening monetary policies because of high inflation, which will cut consumer demand. Global refined zinc production will exceed demand by almost 200,000 tonnes this year, the fifth year running of over-supply, the Lisbon-based International Lead and Zinc Study Group (ILZSG) said. Market has opened at 107.35 & made a low of 105.65 versus the day high of 107.6. 

The total volume for the day was at 19962 lots and the open interest was at 8618.Now support for the zinc is seen at 105.2 and below could see a test of 104.4. Resistance is now likely to be seen at 107.1, a move above could see prices testing 108.3.

Trading Ideas:

Zinc trading range is 104.4-108.3.

Zinc market near 200,000 T surplus in 2011 -ILZSG

Zinc looks to take support at 105.20 and resistance at 107.10.

Zinc weekly stocks at Shanghai exchange came up by 10598 tonnes.

Crude Palm oil yesterday traded with the negative node and settled -1.38% down at 507 on sustained selling by speculators at prevailing higher prices. Trading sentiments remained bearish as palm oil in Malaysia traded moderately lower on poor demand for the commodity among biofuel producers. 

Malaysia's palm oil exports during the April 1-15 period declined by 21% from a month earlier to 4.18 lakh metric tonnes. In yesterday's trading session Crude Palm oil has touched the low of 505.4 after opening at 511.5, and finally settled at 507. For today's session market is looking to take support at 504.4, a break below could see a test of 501.8 and where as resistance is now likely to be seen at 510.6, a move above could see prices testing 514.2.

Trading Ideas:

Crude Palm Oil trading range is 501.7-514.1.

Crude Palm oil yesterday traded with the negative node on sustained selling by speculators

Resistance for crude palm oil is at 510.60 level

Support for crude palm oil is at 504.40 level.

Crude palm oil prices in spot market dropped 8.50 rupees and settled at 505 rupees.