Crude oil updates traded with a positive node and settled up by almost 2% gain at 4021 fluctuating between small gains and losses following comments from Fed Chairman, while most US east coast oil refineries escaped major damage from Hurricane Irene. Speaking at the Fed’s annual gathering in Jackson Hole, Wyoming, Bernanke said Friday that the US economy was recovering and the Fed still had a “range of tools” it can use to bolster growth.
Now technically market is trading in the range as RSI for 18days is currently indicating 49.87, where as 50DMA is at 4163 and crude is trading below the same and getting support at 3952 and below could see a test of 3883 level, And resistance is now likely to be seen at 4065, a move above could see prices testing 4109.
Copper fell moderately reversing earlier gains, when the dollar turned positive following a strong US personal spending reading, but selling was limited as the industrial metal found support from a rallying US stock market. Metals were on continuous fluctuation after the market was disappointed by Bernanke remarks which did not provide any signal for further stimulation.
According to Bernanke, no economic stimulating measures were needed at the time. His remarks were met with quiet response by both exchange rates and stock markets, indicating market worries towards panic-generating moves were completely relieved. Whereas in China, after its central bank extended reserve requirements to margin deposits, another over RMB 900bn will be frozen, thereby causing bearish sentiment for various sectors of China economy, including banks, stocks and commodities.
Though overseas market sentiment improved and domestic investor appetite relatively stabilized, the news to add margin to denominator of reserve ratio will pose certain pressure for domestic markets. Given highly cautious sentiment in base metals markets at the moment. For today's session market is looking to take support at 412, a break below could see a test of 409.5 and where as resistance is now likely to be seen at 417.3, a move above could see prices testing 420.
Zinc updates yesterday traded with the negative node and settled -0.24% down at 103.25 though LME market was closed on Monday. Strong growth of consumer spending in the US eased market cautious sentiment and boosted US stocks to close up.
In addition, Greece's second and third-largest lenders, Eurobank and Alpha Bank, announced on Monday they would merge, and the combined bank will strengthen capital by 2 billion euros, which helped boost European stocks to close up as well. Japan's refined zinc exports for July fell 12 percent from a year earlier to 6,680 tonnes, a slower pace of decline than the previous month as production slowly recovers from the massive earthquake in March.
Zinc exports had halved in June from a year earlier. Exports have been hit by the March 11 earthquake and tsunami, which shut nearly 65 percent of the country's production capacity for zinc. Zinc is used in automotive steel sheet and construction materials. For today's session market is looking to take support at 102.6, a break below could see a test of 102 and where as resistance is now likely to be seen at 104, a move above could see prices testing 104.8.
Nickel yesterday traded with the positive node and settled 0.25% up at 1010.5 tracking a firm global trend and buying by speculators. In the Shanghai nickel spot market, Jinchuan Group raised ex-works nickel price by RMB 3,000/mt to RMB 161,000/mt along with last Friday’s LME nickel price hike. Boosted by Jinchuan Group’s price hike, traders’ confidence gradually resumed.
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