-- Posted Tuesday, 1 April 2008 | Digg This Article | Source: GoldSeek.com
INSIGNIA CONSULTANTS
Asian Metals Market Update for 1st April, 2008
EXPECTED TRADING RANGE
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY 08-- $370.00 - $390.00
NYMEX CRUDE OIL- $96.20 - $106.50
GENERAL MARKET CONDITIONS
The Indian rupee weakened from 39.85 to 40.15 against the US dollar as stock markets fell. This resulted in metals and energies prices in Indian commodity exchanges. Rupee, in the short term will be dictated by foreign portfolio flows in the stock markets. India’s inflation rate is near six percent. The government will not let the rupee depreciate in the short term in a big way to control inflation even if the stock markets continue to fall. For the day the rupee needs to break 40.25-40.30 or else it will fall back to 39.90 and 39.80.
Crude oil prices have been dictating everything. Yesterday gold and silver were firm till crude oil prices rose over $106 and when crude oil prices fell from $106 to $101 they all nosedived. Crude oil prices have been trading in $99-$109 range for the past fortnight. If the US dollar gains and crude oil prices fall, precious metals and base metals will fall. I am a bit skeptical of going long in all metals and energies for the medium term till key technical resistances are not broken. Buying is preferable with higher stop losses. If US March payrolls disappoint on Friday, all the negative sentiment will be converted into positives. Among the base metals zinc has disappointed and if copper falls in the short term zinc prices will easily fall another ten to fifteen percent in the short term. The Columbian Nickel mine worker strike will be over shortly which could result in more losses in Nickel.
COPPER -- MAY FUTURE --
Copper is consolidating in the $372-$390 wider range and needs to break either of them for direction.
NYMEX CRUDE OIL --FUTURE --
Crude oil is bullish over $97.60. Still a sell on rise strategy till $104.10 and $110 is not broken.
HAPPY PROFITABLE TRADING
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-- Posted Tuesday, 1 April 2008 | Digg This Article | Source: GoldSeek.com
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