Weekly Commodity Tips via Trifid Professionals

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Trifid Research is a share market advisory company in the Indian financial market. It has provided 2 days free trial in all segments such as stock, commodity & currency market with top suggestion & tips. This is very useful and reliable for all traders and investors.

Transcript of Weekly Commodity Tips via Trifid Professionals

  • 8 FEB 12 FEB 2016


    W E E K L Y







    Blow by Blow



    Base metals,



  • MAJOR EVENTS Precious metals may perform on a positive note with promises of price rise in 2016,

    according to the London Bullion Market Association(LBMA) survey. Contributors to

    the 2016 Forecast Survey are predicting price increases across the board for all four


    The survey contributors foresee modest increase of 1.1% in the gold price and a more

    bullish outcome for the white metals with price increases of 5.4% for both silver and

    platinum and a more significant increase of 12.7% for palladium prices. This year

    LBMA analysts are more bullish about the prospects of precious metal prices than

    they were in last years survey. Whilst analysts are bullish this is only expected to be a

    partial recovery with prices of all four metals forecast to be some way below last

    years highs.

    This is largely driven by steady performance following the December FOMC, severe

    tensions over the equity market sell-off and demand for safe havens against FX

    volatility and geopolitical concerns.

    WTI Oil plummeted over 6% during trading on Monday with prices edging closer to

    $31 as tepid manufacturing data from China, the worlds largest energy consumer,

    renewed fears that demand may be dwindling.

    These anxieties added to the rapidly fading expectations around OPEC cooperating

    with Russia to curb production, while ongoing concerns over the excessive oversupply

    of oil in the markets continued to haunt investor attraction. Although there was some

    initial optimism directed towards Russias willingness to slash production, Saudi

    Arabia remained defiant on the idea of any cuts, while Iran had already pledged to

    pump up to 1.5M barrels a day in a mission to reclaim its lost market share.

    The visible clash of interests from various cartel members combined with an

    appreciating Dollar has added to oils woes consequently obstructing any opportunity

    for a recovery in prices. WTI remains firmly bearish and this horrible combination of

    record high productions, a heavily saturated oil markets and fears over sluggish

    demand should encourage sellers to attack oil prices towards $30.

    WTI Crude Oil

    remains firmly

    bearish on China


    Global Zinc market

    to grow to

    19.19MMT by 2020

    in terms of


    In terms of consumption, the global zinc market was 15.8 million metric tons in 2015,

    and this will increase to 19.19 million metric tons by 2020, growing at a CAGR of


    The global zinc market is highly fragmented, with primary and secondary smelters

    accounting for 56% of the market. China was the global leader in the manufacture of

    zinc in 2015. Other prominent suppliers of zinc are Australia, India, South Korea,

    Japan, and Latin America. Even though smelting capacity is high, the actual supply of

    zinc will be lower than the rated capacity due to the depletion of mines. This will

    negatively impact the zinc supply in Southeast Asia and the EU. Smelters around the

    world have been facing a supply deficiency since 2011, as per the report.

    This has resulted in reduced capacity utilization in production plants. Capacity

    expansions will be done on a large scale by smelters in China during the forecast

    period. Expansion project investments (both Greenfield and Brownfield) will be

    carried out in countries such as South Korea, Japan, Kazakhstan, and India to increase

    smelting capacity.

    Precious metals

    offer bright

    prospects in


  • E C O N O M I C C A L E N D E R


    Feb 8 8th-12th Mortgage Delinquencies 4.99%

    8:30pm Labor Market Conditions Index m/m 2.9

    Feb 9 4:30pm NFIB Small Business Index 94.6 95.2

    8:30pm JOLTS Job Openings 5.54M 5.43M

    8:30pm Wholesale Inventories m/m -0.1% -0.3%

    Feb 10 8:30pm Fed Chair Yellen Testifies

    9:00pm Crude Oil Inventories 7.8M

    11:31pm 10-y Bond Auction 2.09/2.8

    Feb 11 12:30am Federal Budget Balance 10.3B -14.4B

    7:00pm Unemployment Claims 287K 285K

    8:30pm Fed Chair Yellen Testifies

    9:00pm Natural Gas Storage -152B

    11:31pm 30-y Bond Auction 2.91/2.3

    Feb 12 7:00pm Core Retail Sales m/m 0.0% -0.1%

    7:00pm Retail Sales m/m 0.1% -0.1%

    7:00pm Import Prices m/m -1.4% -1.2%

    8:30pm Prelim UoM Consumer Sentiment 92.6 92.0

    8:30pm FOMC Member Dudley Speaks

    8:30pm Business Inventories m/m 0.1% -0.2%

    8:30pm Prelim UoM Inflation Expectations 2.5%

  • S1 S2 S3 R1 R2 R3

    26950 26485 26090 27835 28180 28510

    S1 S2 S3 R1 R2 R3

    35300 34500 33700 36100 37100 38000

    T E C H N I C A L V I E W

    MCX GOLD showed bullish movement

    as it gave a breakout of inverse head

    and shoulder pattern on daily chart

    and found important resistance of

    27600. Now, if it continues this bull

    rally on higher side then it may find

    next strong resistance of 28270. And

    on lower side 27000 will act as vital

    support level below which may again

    drag towards the support level of


    S T R A T E G Y Better strategy in MCX GOLD is to buy

    above 27600 for the target of 28250,

    with stop loss of 26900.


    G O L D


    S I L V E R

    T E C H N I C A L V I E W

    MCX SILVER last week showed strong

    movement on higher side and gave

    breakout of important resistance level

    of 35300 and closed near to 61.8%

    retracement level. Now, for upcoming

    sessions 36100 is act as resistance for it

    maintain above this resistance it may

    find strong resistance of 37000. On

    other hand 35300 will act as important

    support level.

    S T R A T E G Y Better strategy in MCX SILVER at this

    point of time is to buy above 36100 for

    the target of 37000, with stop loss of


  • C R U D E O I L

    C O P P E R

    S1 S2 S3 R1 R2 R3

    2030 1900 1800 2345 2570 2760

    S1 S2 S3 R1 R2 R3

    312.30 303.95 296.25 321.65 329.85 338.60

    T E C H N I C A L V I E W

    MCX Copper last week showed bullish

    movement, broke trendline act as

    resistance for it, also closed above it

    and found resistance of 23.6%

    retracement level on daily chart. Now

    322.50 will act as immediate

    resistance for it above this 330 is next

    resistance. Closing below 310 again

    drag it towards major support level of

    300 and continue its major trend.

    S T R A T E G Y Better strategy in MCX CRUDEOIL is to

    sell below 2020 for the target of 1800,

    with stop loss of 2350.


    T E C H N I C A L V I E W

    MCX Crude oil showed sideways

    movement, found resistance of

    upperband of downward channel

    pattern on daily charts and closed

    around it. Now, 2350 is act as vital

    resistance for it above which breakout

    of channel pattern is expected and

    may find next resistance near 2475. On

    lower side closing below 2030 may

    again drag it towards major support

    level of 1900.

    S T R A T E G Y Better strategy in MCX COPPER is to sell

    below 310, with stop loss of 323 for the

    targets of 300-295.