-- Posted Friday, 15 June 2007 | Digg This Article

EXPECTED TRADING RANGE
GOLD AUGUST  -- $650.00 -- $661.20	SILVER  JULY  -- $1292.0 - $1339.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER JULY   -- $331.10.00 - $349.90	NYMEX CRUDE OIL  JUNE    - $66.20 - $69.40
GENERAL MARKET CONDITIONS
It’s just June and crude oil us already nearing $70. There are no reports of hurricanes or storms in any major oil producing region. It’s more of a demand pressure that is driving crude oil. US refineries are already operating at nearly ninety five percent capacity and chances of reduction of capacity utilization are high due to maintenance work. Stronger US growth implies higher demand for crude oil and related products which has resulted in increased interest in crude oil. If there is even slight hint of storm in the Gulf of Mexico then crude oil could easily near $100. Iran and other middle east tensions are alive and any escalation of the same will support crude oil prices at lower levels. There is one thing which I learned from highly liquid markets, expect the unexpected. Last year when oil reached $76 a barrel traders were betting on $100 which did not happen. This year the $100 betting may have started in options market but have yet to bet in future markets as investors are once bitten twice shy. Crude oil may near $100 if $80 is breached. A lot of calls will get hit over $80 which will result in hedging demand.    Strike news continues continue to dominate copper and other base metals. Copper July future is expiring this month. In my view punters will try to close July future between $340-$345 as it will be middle of the road which will neither benefit bull nor bears. There are short positions below $328 and long positions over $360. The aim could be to ensure that those who are long as well short roll over. Mine worker threats continue to dominate copper. Liquidity factors will continue to dominate copper and other base metals. Nickel should see a technical bounce. Gold and silver have been trading in a range this week and a break out is in the offing soon
COPPER  -- JULY FUTURE
Copper needs to break $346.80 for $353.60 ad $359.10. On the lower side $331.30 is the key support and a consolidated fall below $339.10 will result in $323.80
SILVER -- JULY  FUTURE
Technical congestion between $1308-$1312 and further at $1292 as long these two levels holds, downside will be limited. Breaks $1324 then $1332 and $1344 and $1359 are the targets.
Happy Profitable Trading & A Great weekend.
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-- Posted Friday, 15 June 2007 | Digg This Article

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