DAILY COMMODITY TECHNICAL Trade Strategies Navin Nair navin.nair@emkayglobal.com 022-6624-2386 Commodity Trading Strategies for the day Commodity Strategy Levels Target Stop-Loss Precious Metals Gold Dec Range 24890 25455 - - Silver Dec Range 33655 33010 - - Energy Crude oil Dec Sell 2745 2760 2655 2805 Natural gas Nov Range 143.50 135 - - Base Metals Copper Nov Sell 297.80 298.50 292 301.55 Nickel Nov Sell 565.50 570 548.50 577.50 Zinc Nov Range 102.60 97.50 - - Lead Nov Range 104.40 101 - - Aluminum Nov Range 96.40 93.80 - - 1
Gold Daily Chart Silver Daily Chart Gold: Gold prices have retraced back towards its 25100 levels. Failure to break above 25250 levels will see the counter weaken towards 24960 levels. A daily close below 24960 will open downside targets of 24750/24600 levels in the counter. Prices need to sustain above 25250 to rebound towards 25325/25400 areas again. Silver: Silver prices are currently trading between its major support zones between 33150 33300 zones. A decisive breakdown below 33100 will open downside targets of 32500/32000 levels. The counter needs to trade above 33500 levels to avoid a breakdown below its support zones. Sustenance above 33500 will help prices rebound towards 33780 levels. 2
Crude Daily Chart Natural Gas Daily Chart Crude Oil (Rs/Bbl): Sustenance below 2700 levels will lead to further weakness in Dec. Crude oil prices and the counter will correct further towards 2655/2636 levels. Intraday pullback rallies will face resistance between 2765 2780 zones. Areas between 2810 2845 are strong supply zones for the counter. Natural Gas (Rs./Mmbtu): Natural Gas prices are trading well below its support at 144 levels. Prices can correct further towards immediate support levels between 136 135.50 levels. Failure to break below this zone will trigger a pullback rally towards 140/142.50 levels. Intraday pullback rallies and weakness from higher levels should be used by traders to go short in the counter. 3
Copper Daily Chart Zinc Daily Chart Copper: Copper prices witnessed a gap down opening and the counter hit a fresh swing low of 293.50 levels. We expect the counter to test its immediate support at 292 levels. Prices can rebound higher until this support holds. Momentum above 297 will help the counter pullback towards 299.25/300 levels. The broader outlook for the counter remains negative and a daily close below 292 will see prices slip towards 288.50/284.70 levels. Zinc: The intraday outlook for zinc will remain negative until prices stay below 102.25 levels. Areas between 101.90 102.25 are the immediate resistance zone for the counter. Weakness from current levels will see prices re-testing recent swing lows at 97.90 levels. A daily close below this level will see prices slip towards 96.50. Momentum above 102.25 will see prices rebound towards 104 levels. 4
Lead: The outlook for Lead will remain negative until prices stay below 105 levels. Prices can re-test its day s low at 102.50 and weakness below this levels will see the counter slip towards major support at 100/99.40 areas. Traders can look to sell into weakness at higher levels. Nickel: Nickel prices have broken down below its multi year support levels. On a broader note, this breakdown has opened downside targets of 515.50/506 levels for the counter. Intraday momentum above 550 will help the counter rebound towards 570 levels. Traders must look to sell into intraday rallies and weakness from higher levels. Aluminium: Aluminium prices should slip lower towards 94/93.50 levels over the coming sessions. Intraday rallies towards 96 96.25 zones can be sold into by traders. Major resistance is placed at 97.50 levels. 5
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