Weekly Commodity Report

Precious metal price slips, as fundamentals favor strong dollar
Gold is drop down on Friday as the US dollar is strong from the Thanksgiving holiday gaining against most major pairs. Trade concerns have increased as the APEC summit once again highlighted how far apart The United State and China are on trade. Crude Oil prices suffered the most form the strength of the dollar, in comparison the yellow metal will remain attractive due to geopolitical risk ahead of a busy week. Gold price is also under pressure as despite some US fundamental hiccups the U.S. dollar remains supported by the U.S. Federal Reserve.

Crude Oil’s Black Friday, drop Down 10% in a Week
Oil prices drop Down more than 6 percent on Friday, with Brent set for a 12-percent plunge this week, as fears that supply would overpower demand intensified, even as major crude-oil producers considered cutting production.Crude Oil supply, led by U.S. oil producers, is helping for growing faster than demand and to prevent a build-up of unused fuel such as the one that emerged in 2015, the OPEC Countries is expected to start trimming output after a meeting on Dec. 6.But this has done little so far to prop up prices, which have drop down more than 20 percent in November, in a 7-week streak of losses.

METALS-Nickel set for another weekly fall on supply surplus
LME nickel fell on Friday, with the market on track for a five-day losing streak due to worries over supply surplus in 2019 and weaker demand from top consumer China.Other base metal prices also fell sharply on concerns that The United State-China trade talks next week could fail, leading to weaker economic growth.Adding to the bearish mood for nickel was news that German chemicals giant BASF plans to use less of the base metal in its electric car batteries. Electric vehicles have been touted as a major new source of demand.

TECHNICAL VIEW

MCX Gold last week showed sideways to downward side movement and settles below 30500 levels. For upcoming period our bearish overview will remain valid if price sustains below 30500 and below this level 30100 will act as next strong support that is its bullish support line. On higher side it has strong resistance of 30800 and above this level price will push for some recovery from lower levels up to next resistance level of its bearish resistance line i.e. 31200 levels. 

STRATEGY

Better strategy in MCX GOLD is to sell below 30400 for the target of 30000 with stop loss of 31000.

TECHNICAL VIEW

MCX Silver last week showed strong bearish movement and broke its important support level of 36500 as well as able to close below this level. For upcoming week it may continue with down trend towards next major support level of 35600 and upward side it has key resistance of its bullish trend line i.e. 36700 levels and if price maintains above this level then it will takes quick recovery from lower to upper level and test next resistance of 37200 and after that trend may be change.

STRATEGY

Better strategy in MCX SILVER is to sell on highs around 35500 for the target of 34500, with stop loss of 37000.

TECHNICAL VIEW

MCX Crude oil remains continue with its bearish trend and test its major support level of 3570. For upcoming trading session if price breached 3570 then our bearish overview will remain continue towards next support of 3470 and after that 3370 will be immediate support level. On upward side it has strong resistance level of 3800 and if price maintains above this level then price may teat next resistance of 3900 as well as takes sharp recovery from lower to higher side.

STRATEGY

Better strategy in MCX CRUDE is to buy above 3810 for the target of 4000, with stop loss of 3500.

TECHNICAL VIEW

MCX Copper last week took reverse movement from its bearish resistance line i.e. 435 levels and showed sideways to bearish movement as well as close around its support of 428. For upcoming session if price breaks and sustains below 428 then this bearish momentum can take price towards next support of 420 which is its major support line. On upward side it has resistance of 435 and above this level price may test next level of resistance i.e. 445 as well as trend may also change.

STRATEGY

Better strategy in MCX COPPER is to sell below 425 for the target of 415, with stop loss of 435.

Guar gum showed bearish movement last week, and found its important support around the level of 8855. If the prices sustains below its support level of 8750 then the bearish momentum will take prices up to 8250 level. On other hand if the prices maintains above 9500 then prices may find the next resistance level of 10000.

Soyaref showed bearish movement last week and found the support level of 720. If the prices sustain below its support level of 720 then the bearish momentum will take prices up to 710 levels. On other hand if the prices maintains above 740 then prices may find the next resistance level of 750.

Turmeric showed bearish movement last week, and able to found its important support level of 6388. If the prices maintain above its resistance level of 6600 then the bullish momentum will take prices 6800 level. On other hand if the prices sustains below the support level of 6350 then prices find the next support level of 6150.

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