21 January 2016

MARKET OUTLOOK OF COMMODITY 21 JAN 2016

YESTERDAY’S  LEAD HIT FIRST TGT 109!!!!!!!
“BUY 2 LOT CRUDEOIL FEB CONTRACT ABOVE 1925 TGT 1950/1985 SL 1890” 
Crude Oil :U.S. oil prices crashed below $27 dollars a barrel on Wednesday for the first time since 2003, caught in a broad slump across world financial markets with traders also worried that the crude supply glut could last longer. Oil has fallen more than 25 percent so far this year, the steepest such slide since the financial crisis, piling more pain on oil drillers and producing nations alike. Yet they keep pumping more oil into an oversupplied market. Venezuela requested an emergency OPEC meeting to discuss steps to prop up prices, but other delegates dismissed the idea. A UAE shipping firm became one of the first to resume direct business with Iran after international sanctions on Tehran were lifted at the weekend, a reminder of how quickly more oil may flow. On Tuesday, the International Energy Agency warned that the world could "drown in oversupply" of oil in 2016, with the lifting of sanctions against Iran allowing that country to add its exports to the global glut. The selloff triggered a further slide in shares of big U.S. shale drillers, as investors feared much of the sector would struggle to withstand a prolonged period with prices below $30.
Continental Resources dropped more than 8 percent. Energy market watchers expect the global crude glut to persist through at least the end of this year, adding to stockpiles that in some places are testing tank limits.
Outlook : We expect crude oil prices to trade negative on the back of up lift of sanctions on Iran and global supply glut.
Technical Outlook
S2 S1 1860 1900
PIVOT  1919
R1 R2  1980 2020

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