Skip to main content

Commodity market review after 11th November, 2011

Oil & Natural Gas

If global events remain stable then Oil has more chance to go higher levels from here. Nymex Oil (Dec) is trying to break a good resistance of $96, in coming days it will be clear whether it maintains this level or not. In the downside it has support at $90, but before that it has initial support at $94.  In the upside it has resistance at $100 level. Brent Crude (Dec) is also trying to break $112 level, now if it maintains this level then it will try to test $118 level in coming days. It has support at around $108. Last week I was suspecting that Natural Gas (Dec) has more chance to drop from this level, now it may get some support around $3.50 level. On the upside it has resistance at $3.80 level.


Last week I was expecting that since Gold (Nov) is following a channel so it may test lower level of the channel that is $1680 but it extended its run in the upside. Now it has support at $1700-$1720 level. In the upside it has resistance at $1820. Gold has keep its bullish momentum and some are expecting it to reach around $2000 level.
Silver’s (Nov) chart pattern is not clear to me, it is moving around $35 range. Last week I was talking about a break out but yet it is not clear. It has initial support around $33-$34 range and resistance around $39-$40 range.
Last week I was talking about higher highs and higher lows for Copper (Nov), this week it follows that trend. Unless it breaks $3.10 range in the downside it will follow that trend, therefore in the upside it needs to break $3.70 level. If Copper tests level below $3.1 then it has a chance to make a bearish pattern though it is very early to talk about that.

All these metal are showing no sign of correction and everyone is expecting more from it. During October and November, both Gold, Silver and Copper were reacting on quite similar bullish pattern. Now while Gold is still moving up but other two are not reacting like Gold. In fact Copper looks little weaker among the lot, but I have a feeling that Copper may feel the gap in coming days. In case of Silver, though it is not clear but looks like it may follow the trend.

NOTE :  Please see the disclaimer of this blog .


Popular posts from this blog

DAX forecast for coming week ended 15th March, 2013.

This week was very good for Dax, though it is getting resistance at 8100 range. Now it has a chance to test downside again. I think even if Dax tests lower levels, it has more chance to bounce back from around 7800 range and therefore it will again test upside.

On the other hand if it shows flat movements around 8000 range in initial days of the coming week then there is a chance that it may take a decisive call in later days. Considering the recent trends it has the chance to test higher levels may be around 8200 but that will be a very aggressive call after taking in to account the movement from last December. I will worry about the downside when Dax will be testing levels below 7600 ranges.
NOTE: Please see the disclaimer of this blog.

Fed’s rate hike Vs Sovereign rating up gradation

Financial market is very much worried about the rate hike in US, probably this is going to come in coming December. But I think that is not going to change much of the things. Even Fed hikes rate in December it will be not so much, because we are forgetting one thing that interest rate in US is around zero so even they hike rate by 0.25-50% basis points (at most) in this year that will not be enough cause for Dollars to change their locations around the world especially markets have already discounted this coming rate hike in US.

A new disaster is coming in EU banking sector, whom to blame, big Audit firms!

First I was thinking what should be the title of this posting? Will it be good if I write that big audit firms set the time for EU bank collapse! If someone is thinking that financial crisis is over then think twice because the coming EU banking crisis is no way less than 2008 financial crisis. The time bomb will explode at some point of time in future, the time has not yet set for it. In that tsunami, forget about the smaller if any major banks collapse then I will not be surprise.