Thursday, May 31, 2012

Copper Updates and MCX Crude Tips For Today

MCX Copper Updates

Copper was the worst performing commodity in the base metals pack, yesterday as it declined around 2 percent on the LME. Turning negative for the year and coming within $20 of its 2012 low on fears of a widening European debt crisis and fading hopes for a Chinese stimulus. In today’s session we expect base metals prices to trade lower on account of slowdown in US and European economies. Additionally, a stronger dollar will also lead to downside in base metals prices on the LME.

Technical chart of MCX Copper suggest that prices have breached the crucial support of 422. RSI is in a sell mode. We expect prices to correct up to levels of 418.

MCX Crude Oil Tips

Oil entered a bear market in New York as it headed for the biggest monthly drop in more than three years on speculation Europe’s worsening debt crisis and a slowing U.S. economy will reduce fuel demand. Oil for July delivery traded at $87.70 a barrel, down 12 cents. WTI Crude Oil is currently trading at $87.51 per barrel. MCX Crude Oil May is currently trading at Rs. 4959, it is trading down by Rs. 3 for the day.
From the intra-day perspective we expect crude oil prices to trade with a negative bias on account of expectations of rise in US crude oil inventories, slowdown in European and US economy along with a stronger dollar index.

Technical chart of Crude Oil suggest that prices have broken the crucial support of 5000. RSI is in a sell mode. We expect prices to correct up to levels of 4900.

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