21 February 2014

COMMODITY OUTLOOK FOR TODAY FOR 21/02/2014

Trading Call for the day: 
"Sell Natural Gas in the range 392-392.5 with Stop Loss 396 Target 386."
PRECIOUS METAL
On yesterday’s trading session precious metals closed negative where Gold settled down -0.5% at 29882 pressured by a firmer dollar and having risen nearly 1 percent in the previous session, but the precious metal was heading for its third week of gains on a patchy recovery in the global economy. Silver settled down -0.63% at 47486 fell as the markets expect reduced demand from major importer China after it reported weak manufacturing data. The two commodities are expected to trade within the range for the day. Support for Gold is at 29750 & resistance at 29950. Support for Silver is at 46900 & resistance at 47700.
BASE METAL
On yesterday’s trading session base metals closed negative after poor manufacturing PMI for China on Thursday. Economic data from the Euro zone indicated slow recovery in the area, causing the euro to slip for a second day, which negatively affected LME. Base metals traded with negative bias the whole day and within the range only. The base metals are expected to trade within the range for the day.
CRUDE OIL
MCX Crude Oil settled up 0.12% at 6414 fluctuated between small gains and losses on falling demand and higher U.S. supplies. 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 1.85% at 386.20 but dropped from 395 level on profit taking sent natural gas futures edging lower after weekly U.S. supply data largely met expectations, giving investors reason to lock in gains stemming from recent blasts of wintry weather and sell the commodity for profits. The commodity rose more than 10% in last two trading sessions and might consolidate or correct for some days to rally further. Support for Natural Gas is at 378 and resistance at 392.

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