COMMODITY OUTLOOK FOR 16/01/2014

Precious metals closed negative yesterday where MCX Gold settled at 29019 & MCX Silver settled at 44785 because of strong & positive equity markets. Gold & Silver traded with negative bias the whole day but managed to close above their daily 8EMA which suggests positive momentum to continue for a while in these two commodities and only closing below the support levels will bring any major down move in these commodities.

On yesterday’s trading session almost all base metals traded with negative bias in the first half of the trading sessions and showed massive recovery in the later half of the session and the closed above their resistance levels. And, for today’s trading sessions the metals might trade with negative bias in the first half of the sessions but later the up move is expected to be seen in the base metals.

MCX Crude Oil recovered on aggressive short covering by the traders. Crude Oil prices broke the resistance level of 5770 in yesterday’s trading sessions and also traded with positive bias the whole day. International markets may feel resistance near 95$ level but once this level is broken then again the trend will change for the commodity. Intraday support for Crude Oil is at 5760 & 5720 and resistance is at 5830 & 5850.

MCX Natural Gas traded with positive bias the whole day and closed above its resistance of 270 and now it may consolidate a bit for 2-3 trading sessions to resume its uptrend again. Support for Ntural Gas is at 268 & 265 and resistance is at 272 & 275 in this commodity.