Monday, September 19, 2011

CommoditIes Update

Some of the commodities which were showing tremendous weakness have now given confirmed sell. My own assumption about the global macro are very bearish and therefore I am expecting a good sell off in all industrial metals and energy. Let us look at the first chart of copper.

In the chart we can see that copper have made a distribution pattern and have broken below the trend line. It had also done a failed retesting of trend line which gives more conviction about the impending fall.  Traders can sell copper at cmp and on pull backs  with stop loss of 405. 

Copper Monthly Chart

The following chart shows the retracement on copper. The downside target for copper is at around 330 and 290.
Copper Retracement

 Similarly Nymex crude had been forming distribution pattern and have broken below the support  Traders can short crude at Cmp and average it around 88 with a stop loss of 92.50 and target of 75 -77 USD.
Nymex Crude

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