1. MCX Silver expected to trade range bound; support 57700.
Those traders who are holding buying position can maintain 57700 as stop loss for their long position.
Intra-day traders are advised to wait till evening before entering into short term trade.
The political troubles of Europe have forced their way back onto the agenda while outcome of ECB
monetary policy meeting is being awaited by the investors. It is expected that the ECB will keep rates
unchanged at 0.75%.
For getting indications on the future direction of monetary policy, President Mario Draghi’s post-policy
meeting press conference will be closely monitored by the investors. Depreciation of INR by 0.50%
against USD on Friday is expected to turn positive for silver prices.
It is expected that the US trade deficit of goods and services will decrease to USD45.5bn from
November’s USD48.7bn. Beyond the estimate the trade deficit increased to USD41bn in November. Lack
of export growth and an increase in non-oil imports was the cause, for the break down in figures.
MCX Crude Oil positive on depreciation of Indian Rupee.
Global crude oil prices came under pressure as Euro turned weak on heavy selling pressure following
comments from European Central Bank President Mario Draghi. Also, weaker than forecast U.S. jobs
data also pressurised the crude oil movement.
Crude oil futures on New York Mercantile Exchange (NYMEX) for March delivery is up by 0.23 percent at
$ 96.06 per barrel as of 07.11 PM IST on Friday. With China’s exports climbing in January by 25%, and
imports registering a jump of 28.8%, global crude oil futures at one point climbed 0.4% trimming the
first weekly decline in 9 weeks.
“This is the strongest showing of China’s export growth since last April and bodes well for China’s
demand growth for energy going forward,” Meanwhile, China’s crude oil demand is estimated to grow
by 5% in 2013, backed by a solid economic recovery and the addition of new refining capacity,
Manufacturing activities have gained pace in recent months, which have led to a recovery in auto sales
and miles driven.
MCX Copper positive on China trade data, Euro Zone optimism.
Copper futures on India’s Multi Commodity Exchange (MCX) is positive on strong Chinese trade data and
optimistic statement on Euro Zone economy by the president of European Central Bank. The stronger
than estimated exports from China have shown the signs of global economic recovery especially in
United States and Europe.
MCX copper futures for February delivery was up by 0.40 percent at Rs.443.05 per kg as of 05.07 PM IST
on Friday.“Intra-day traders are advised to book profit in thin trading range and should be cautious on
transactions ahead of US trade balance data to be released in the evening. The trade forecast positive
for base metal and US dollar,”
“Intra-day traders are advised to book profit in thin trading range and should be cautious on
transactions ahead of US trade balance data to be released in the evening. The trade forecast positive
for base metal and US dollar,”
2. The stronger than estimated exports from China have shown the signs of global economic recovery
especially in United States and Europe.
MCX GOLD Technical Trend
MCX GOLD last week showed upward movements found resistance around trend line. On daily charts it
forms a pattern falling wedge, an upward break out is expected above 31000 and next resistance is seen
around 31250. On other hand if it will break support of 30700 then next support is seen around 30450.
STRATEGY
Better strategy in MCX GOLD is to buy above 31000 for the targets of 31500-31800 with stop loss of
30400.
MCX SILVER Technical Trend
MCX SILVER last week showed sideways movements found strong support of trend line now immediate
support is seen around 57200 below this breakout of trend line is expected and may find support around
56300. For higher level 58800 is seen as resistance zone for it, above this bulls become active and may
break level of 60000.
STRATEGY
Better strategy in MCX SILVER at this point of time is to sell below 57400 for the target of 55400, with
stop loss of 59200.
MCX CRUDEOIL Technical Trend
Crude oil last week showed sideways movements broke 23.6% retracement but closed above this. Now,
5200 is seen as resistance for it, if it gives closing above this then an upward rally is expected towards
next resistance level of 5280. On lower side if it break 5100 then next support is seen around 5000.
STRATEGY
Better strategy in MCX CRUDEOIL is to buy above 5200 for the target of 5300 with stop loss of 5090.
MCX COPPER Technical Trend
MCX Copper last week showed sideways movements broke resistance of 23.6% retracement and closed
above this. Now, if it able to maintain above this then next resistance is seen around 451. On lower side
438 is act as crucial support for it below this it is in weak zone and may find next support around 433.
STRATEGY
Better strategy in MCX COPPER will be buy on dips, with stop loss of 438 for the targets of 455-460.
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