20 February 2014

COMMODITY OUTLOOK FOR TODAY 20 FEB 2014

Trading Call for the day:
  "Buy Crude in the range 6390-6395 with Stop Loss 6350 Target 6440."
PRECIOUS METAL :- 
 On yesterday’s trading session precious metals closed negative where Gold settled down -0.64% at 30031 after the news that India is likely to cut the import tax on gold before end-February by between 2% and 4% from the current level of 10%. Silver settled down -0.49% at 47787 fluctuated between small gains and losses after the release of Federal Reserve meeting minutes that highlighted the possibility of an increase in interest rates sooner than expected. The two commodities are expected to trade with negative bias for the day. Support for Gold is at 29750 & resistance at 30150. Support for Silver is at 46900 & resistance at 47600.
BASE METAL :-
 On yesterday’s trading session base metals closed with mixed views as gains were capped after a manufacturing gauge for China declined more than estimated, damping demand prospects in the world’s biggest user of metals. Base metals traded with positive bias the first half of the day but later during the trading session all base metals fell and did not shown any signs of intraday reversal. The base metals are expected to trade within the range for the day but they might bounce from their support levels.
CRUDE OIL :-
 MCX Crude Oil settled up 0.95% at 6406 but overall traded in the range as the markets weighed weather concerns in the U.S. along with heating oil inventories. Crude Oil is trading and sustaining consistently above its resistance but it might correct in today’s trading session. Intraday support for Crude Oil is at 6360 and resistance at 6440.
NATURAL GAS :-
 MCX Natural Gas settled up 11.33% at 379.20 rallied to the highest settlement in more than five years as the latest U.S. weather forecasts called for more severe cold, fuelling worries about already tight supplies. The commodity rose more than 10% in yesterday’s trading session and might consolidate or correct a bit to rally further. Support for Natural Gas is at 363 and resistance at 377.

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