Commodity Trading Tips for Crude Oil

Friday, August 17, 2012

Commodity Trading Tips for Crude Oil
Crude gains after data showing U.S. jobless claims rose last week and housing starts fell in July strengthened the euro and weakened the dollar, helping support dollar-denominated oil prices. A fall in production in the North Sea during September due to maintenance has also tightened supply in Europe and helped push up the price of light, sweet crudes for immediate delivery. Global crude oil benchmark Brent has risen more than a third in less than two months on escalating worries about a conflict over Iran's nuclear programme and as investors hope for more stimulus measures from central banks, which would boost commodities. Data on Wednesday showing a steep drop in U.S. stocks exacerbated global supply worries. Added to that is the ongoing geopolitical issue in the Middle East with recent comments suggesting a conflict. U.S. crude stockpiles fell more than expected last week, slipping 3.7 million barrels to 366.16 million barrels, the Energy Information Administration reported, despite a modest rise in crude imports as plant utilization remained high. Analysts had forecast a drop of 1.7 million barrels. Crude stocks may have also declined in part due to the fall in output because of hurricanes in the United States. Now technically market is trading in the range as RSI for 18days is currently indicating 67.73, where as 50DMA is at 4915.28 and crude is trading above the same and getting support at 5242 and below could see a test of 5188 level, And resistance is now likely to be seen at 5328, a move above could see prices testing 5360.

Trading Ideas:
Crude trading range for the day is 5188-5360.

Crude gains on worries over possible disruptions to supply from the Middle East and a drop in U.S. oil inventories.

A fall in production in North Sea during September due to maintenance has also tightened supply in Europe.

Crude stocks have also declined in part due to the fall in output because of hurricanes in the US.

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Commodity Trading Tips for Copper

Commodity Trading Tips for Copper
Copper ended with slight gains recovering from losses supported by a weaker dollar and expectations that recent financial data could spur growth-supporting measures that would boost global metals demand. German Chancellor Angela Merkel expressed support for the European Central Bank (ECB) to fight the European debt crisis. Merkel said ECB President Mario Draghi's vow to do everything to preserve the euro zone is in line with what European leaders have been saying. Her comments helped the euro rebound strongly and drive commodity markets rallying from earlier lows. Expectations for economic stimulus in China grew after Premier Wen Jiabao said the country, the world's top consumer of refined copper, still faced headwinds despite cooling inflation. Those expectations got another boost after China's Commerce Ministry said foreign direct investment had fallen for January-July versus a year earlier and that the trade outlook for 2012 was worsening. Sluggish U.S. growth in the second quarter, undermined by the euro zone crisis, has also raised hopes the U.S. Federal Reserve will take further quantitative easing (QE) steps. Sluggish U.S. growth in the second quarter, undermined by the euro zone crisis, has also raised hopes the U.S. Federal Reserve will take further quantitative easing (QE) steps. In yesterday's trading session copper has touched the low of 413.05 after opening at 415, and finally settled at 414.95. For today's session market is looking to take support at 413.4, a break below could see a test of 411.9 and where as resistance is now likely to be seen at 416.1, a move above could see prices testing 417.2.

Trading Ideas:
Copper trading range for the day is 411.9-417.3.

Copper ended with slight gains recovering from losses supported by a weaker dollar

Expectations for stimulus in China grew after Premier Jiabao said country still faced headwinds despite cooling inflation

German Merkel’s comments helped euro rebound strongly and drive commodity markets rallying from lows.

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Commodity Trading Tips for Silver

Silver firmed on speculation that central banks may be set to launch more bullion-friendly stimulus measures to boost growth, though mixed U.S. data that dampened expectations for imminent Federal Reserve action kept prices in a range. Further monetary easing would benefit gold by boosting liquidity and maintaining pressure on long-term interest rates, keeping the opportunity cost of holding bullion at rock bottom, as well as fuelling inflation fears and weighing on the dollar. However, softer-than-expected inflation data reassured investors that price pressures would not prevent the Fed from launching more QE if a more negative view of growth emerges. The U.S. Department of Labor said the number of individuals filing for initial jobless benefits rose by 2,000 to a seasonally adjusted 366,000 last week, compared to expectations for an increase of 1,000 to 365,000. Moves in the bullion prices this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system. Market players are already beginning to focus on an annual meeting of economists and central bankers in Jackson Hole, Wyoming, at the end of August. Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge. Now technically market is trading in the range as RSI for 18days is currently indicating 50.33, where as 50DMA is at 53419.92 and silver is trading above the same and getting support at 53492 and below could see a test of 53233 level, And resistance is now likely to be seen at 53902, a move above could see prices testing 54053.

Trading Ideas:
Silver trading range for the day is 53233-54053.

Silver firmed on speculation that central banks may be set to launch more bullion-friendly stimulus measures

Softer than expected inflation data reassured investors that price pressures would not prevent Fed from launching more QE

Expectations of monetary stimulus tend to benefit prices, as bullion is seen as safe store of value.

Read more...

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