MCX & COMEX EXPECTATIONS FOR 20TH MAY 2010

MCX  &  COMEX  EXPECTATIONS  FOR  20TH  MAY  2010 ::

MCX Silver July: while 28178-28257 holds, we expect a pullback towards 29440 / 29520 levels now. Direct fall below 28020 to hint at further weakness.
S1 28590 S2 28410 R1 28930 R2 29110

 

MCX Gold June: while 17920 holds, we expect 18225 to be re- tested in the coming session. Below 17920 stronger support is at 17875 followed by 17785.
S1 17950 S2 17870 R1 18100 R2 18170

 

MCX Copper June: Supports at 308.50 followed by 303 now. Favored view expects support to hold for 318.70 / 319.70 now.
S1 302.40 S2 298.40 R1 309.40 R2 313.40

 

MCX Crude Oil June: Supports at 3370 followed by 3345 should hold for a test of 3485. Fall below 3328 to dent our bullish view.
S1 3340 S2 3300 R1 3410 R2 3450

 

MCX Zinc May: Buy on the break of 87.25 s/l 85.85 tgt 89.50.
S1 85.45 S2 84.45 R1 87.25 R2 88.25

 

MCX Lead May: while 79 holds downside attempts we expect a pullback to 83 levels now.
S1 80.15 S2 79.15 R1 82 R2 83

 

MCX Nickel May: Supports at 983 followed by 976 now. Ideally, supports to hold for a corrective rise to 1025 levels.
S1 983.50 S2 971.50 R1 1003.50 R2:1015.50

 

MCX Natural Gas May: Ideally,185-187 level to hold for test of 200 level or even higher. Direct fall below 185 to dent bullish view
S1 191 S2 187 R1 197 R2 201

 

 

MCX GOLD TRADING STRATERGY :: 

 

RSI has exited the overbought zone.

We had indicated to sell on rise to 18060-18202. The high registered yesterday was 18291 and closed at 18000. Traders who managed to sell as indicated had the opportunity to benefit.

Exit long and sell on rise to 18089-18202 with overall stop loss placed at 18424.

Sell further on fall below 17900 with high of the day stop loss

 

 

MCX SILVER TRADING STRATERGY ::

Traders holding short positions can keep a stop loss of 29540 to hold short.

Cover short positions on dip to 28418-27572 as the opportunity arises.

Sell on rise to 28927-29264 with a stop loss of 29540.

 

 

NYMEX CRUDE ::

Hold short if any with a stop loss of 72.5$

Cover short positions on dip to 69.73$ or below as the opportunity arises.

Sell on fall below 67.8$ with high of the day stop loss. A rise and close above 72.50$ can show a near term reversal for a pullback.

 

 

NYMEX NATURAL GAS ::

Exit long positions and sell on rise to 4.21$-4.29 with a stop loss of 4.50$. Expect lower range of 4.08$-3.87$ to be tested.

Buy on breakout and close above 4.50$.

 

SPOT GOLD ::

Hold short if any with overall stop loss of 1229. We had indicated to sell below 1200$ and the low registered yesterday was 1186.92$.

Traders who managed to sell had the opportunity to benefit.

Sell on rise to 1201-1216 with a stop loss of 1229. Expect lower range of 1176$-1135$ to be tested. The blue color trend line can offer support which is in the range of 1176$-1155$

SPOT SILVER  ::

 

We had indicated to Sell on fall below 18.62$ with high of the day stop loss. The low registered yesterday was 17.93$. Traders who managed to sell had the opportunity to benefit.

Hold short with a stop loss of 19.10$.

Sell on rise to 18.35$-18.764 with a stop loss of 19.10$.

Expect lower range of 17.74$-16.72$ to be tested and can be used to cover short positions. 

 

NOTE ::

Even as investors remain broadly positive on Gold, technical outlook is turning increasingly vulnerable atleast for the near term. We had discussed on expanding trading ranges . Incidentally Comex Gold Futures' open interest have gone up to a record peak as of May 17th, to 600000. This is a confirmed signal of MAJOR VOLATILITY. Also note that Comex June Future's first notice falls on May 28th indicating that if prices were to peak by end of month, the falls would be huge. Taking into account, the usual massive long liquidation spree normally seen around comex expiry, it is highly advisable to be EXTREMELY careful on the long side. MCX prices may appear bouyant due to weakening Rupee against US Dollar. On a cautious note, intraday longs are advised to be closed out on the same day. Overnight long positions are advised only if prices stay above $1227