For Crude Oil Tips : supplies, where as in other hand OPEC said oil prices are more in line with market conditions after last week’s 14.7% collapse, and maintained its 2011 demand forecast. The world will need an average of 29.87mln bls of crude a day from OPEC’s 12 members this year, about 400k a day more than last year because of “roaring” economic growth in China, the group said in its monthly market report today. U.S. crude stockpiles climbed 2.95mln bls last week to 367.2 million, the API said.
Now technically market is trading in the range as RSI for 18days is currently indicating 36.04, where as 50DMA is at 4820 and crude is trading below the same and getting support at 4357 and below could see a test of 4264 level, And resistance is now likely to be seen at 4609, a move above could see prices testing 4768.
Copper dropped to a five-month low and settled -3.17% down at 391.1 on concern that China may continue monetary tightening after inflation spread beyond food, damping the demand outlook in china. The data yesterday supported our view that tightening policies won't ease in the near future, Copper may see further downside given China's economic outlook and technically also trading well below 9000$ can could dip till 8480$ as next important support level.
China's inflation is spreading beyond food, with non-food inflation climbing 2.7% in April, the fastest pace in at least six years, while overall consumer prices rose 5.3%. China's industrial production gained 13.4% last month from a year earlier, the least since Nov and slower than 14.8% in March. The PBOC has raised the reserve requirement ratios seven times and the interest rates four times since October last year to mop up the excessive liquidity.For today's session market is looking to take support at 386, a break below could see a test of 381 and where as resistance is now likely to be seen at 400.7, a move above could see prices testing 410.4.
Trading Ideas:
Copper trading range is 381-410.4.
Copper crumbled as signs of a growth slowdown in China signaled sustained softness in demand
Copper is taking resistance at 400.70 and support is seen at 386.
Copper daily stocks at Shanghai exchange came down by 200 tonnes.
inc yesterday traded with the negative node and settled -1.73% down at 95.65 after data released yesterday that China’s CPI during April rose by 5.3% YoY, compared with the median forecast of an 5.2% increase, pushing down LME zinc prices overnight during the Asian trading hours. Later, the Standard and Poor’s said Portuguese banking sector may need more government support, a signal that Portugal will be likely downgraded sovereign rating.
Nickel yesterday traded with the negative node and settled -2.43% down at 1092.7 tracking LME nickel which opened at USD 24,900/mt and closed at USD 24,299/mt, down by USD 601/mt from a day earlier, with the highest price at USD 24,950/mt and the lowest price at USD 24,100/mt. LME base metal prices closed with losses on Wednesday, due to stronger US dollar and concern that China's slower economy growth will cause weak demand for base metals.
