Home > Financial > Commodity Research Report Ways2Capital 4 June 2018

Commodity Research Report Ways2Capital 4 June 2018

Added: (Mon Jun 04 2018)

Pressbox (Press Release) - BULLION

Global stocks slid on trade concerns, but gold failed to capitalize on the fleeting liquidity as the dollar gained ground and heaped pressure on commodities while markets await the US payrolls report.Gold last traded at $1,298.21 an ounce, not far from the opening price, with an intra day low at %1,297.93, and a high at $1,300.63.The Gold is bearish for medium long term .Currently Gold is in strong down trend with good momentum but volume is unsatisfactory . In last few days volume based selling happened in the Gold. The MACD is showing sell signal For short term Gold is in sell position. Immediate support for Gold is 30530. Resistance for the Gold is 31600.


US crude fell 1.7% yesterday, the first loss in three days, while losing 2.6% in May on prospects of increased output by OPEC and Russia to counter potential shortages from Iran and Venezuela due to US sanctions.US crude fell 1.5% so far this week heading for the second weekly loss in a row. 

Natural gas futures rose over two percent to early February highs as the dollar index fell off November 7 peak following earlier data from China the world's largest energy importer and the US including the EIA inventory report. 

Base Metals

Nickel prices must embark on a sustained advance before metal to meet demand for electric vehicle (EV) batteries will emerge, according to industry experts.The London Metal Exchanges three month nickel contract has risen substantially this year though industry experts said it still isn’t high enough to generate additional supply. The contract closed at $15,210 per tonne on May 31, a 19.5% increase from $12,730 per tonne on January 2, the first trading day of the year.


After the recent highs markets failed to hold onto the higher levels for Jeer as profit booking was noted towards end of last week. Prices however are likely to find some support at these levels with overall sentiments remaining firm. Rising export demand from China amidst falling arrivals kept supporting the price.

Trend remained slight weak for Turmeric last week as good monsoon reports kept pressure on prices as it neared the psychological 7000 mark. Prospects of rising export and domestic demand could support prices but early arrival of Monsoon and its expected favourable impact on the new crop sowing kept up trend limited.


Strong recovery was noted for Mentha last week as prices found strong support at these levels after the recent dips. Even as harvesting season nears a rising demand at these lower rates are supporting prices. Good crop sowing reports have been noted earlier this year. The peak harvest season will be June and July therefore traders expect the harvesting activities to pick up in coming weeks.

soy bean prices during greater part of the week but short covering at strong support levels on Friday took prices higher. Prices are down nearly 4.5 % week on week. However in coming weeks soy bean will be supported at lower levels, due to positive tone in RM seed and limiting supplies.


Moderate recovery was noted towards end of last week as market reports suggest export demand gradually picking up at these lower levels. However, persistent favourable reports on the weather front pressurized prices. Early Monsoon arrival report from the IMD and its satisfactory progress as of now kept trend down. Monsoon progress towards the growing areas in Rajasthan remains an important factor in determining the future price movement for Guar as sowing depends on that.


Drop in selling interest due to cheapening offers and weekend short covering resulted in a firm futures market on Friday. The broader view remains unchanged i.e.ongoing summer demand, lowering arrivals and drop in the crop acreage shall be influential in keeping the trend supported in forthcoming months.

As per Cotton Association of India (CAI) Indian production for 2017-18 has been lowered by 5 lakh bales of 170 kg each to 362 lakh bales. The reasons being crop damage from severe pink boll worm infestation and lower rains in some areas. Total supply is estimated at 412 lakh bales. Higher consumption of 330 lakh bales has been reported with increased export possibilities by 5 lakh bales to 60 lakh bales.


The primary trend of Rmseed is bullish and market is continuously making new high supported by the 200 days moving average. On its daily chart market is forming bullish flag pattern indicating positive trend in near term to mid term basis. Relative strength index showing positive movement in sustaining above the level 60 supporting bullish trend. Market can face Immediate support at the level of 3905, while Resistance at the level of 3990.


From last couple of trading weeks market is trading in range between the level of 4300 to 4390 with the negative sentiment support by 100 days moving average and recently market broken its up trend channel on its hourly chart indicating bearish trend from short term to mid term basis. It is having important support at the level of 4270 while resistance place at the level of 4400 .One can make sell position below the support level of 4270 for the target of 4130 with stop loss of 4330.


From last number of trading days market is trading in range between the level of 167 to 163 and continuously marking lower highs indicating negative sentiment in short term to mid term basis. Also recently market has been broken its support trend line appear on the image. It is having near support at the level of 163 resistance place at the level of 165. One can make sell position below the level of 163 for the target of 161 with the Stop loss of 164.10


After the sharp up trend rally aluminium prices trading in range between the level of 160 to 152. And recently market is getting bounce back from support level and we are expecting that market can go higher to the level of 160 from the current level supported by the 100 days moving average. Relative strength index showing positive movement in sustaining above the level 50 supporting bullish trend. We suggest to make buy position above the level of 156.50 for the target of 159.50 with the stop loss of 155.50 

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