9.9 C
New York
Wednesday, April 14, 2021

Trading strategies for crude oil and zinc by Tradebulls Securities

Must read

Crude Stockpiles Dropped 5.889 Million Barrels Last Week: EIA

Sign In/Free Sign Up 0 Stock Markets7 minutes ago (Apr 14, 2021 10:36AM ET) (C) Reuters. By Liz Moyer Investing.com -- U.S. oil stockpiles...

New Day, New All-Time Highs, And Gold In The Wings

S&P 500 went up yet again yesterday, and the corporate credit markets' non-confirmation resolved itself. While the same can't be said about small caps...

SpaceX raises $1.16 billion in equity financing

Sign In/Free Sign Up 0 Stock Markets17 minutes ago (Apr 14, 2021 10:25AM ET) (C) Reuters. SpaceX headquarters is shown in Hawthorne, California. (Reuters) -...

Federal Bureau of Prisons says Ponzi schemer Bernard Madoff has passed away

2/2 (C) Reuters. File photo of Bernard Madoff exiting the Manhattan federal court house in New York 2/2 By Jonathan Stempel and Bill Trott NEW YORK (Reuters)...


Gold

There are two challenges for Until now, had to fight rising bond yields but now momentum has started in US dollar which is another challenge for Positive investor sentiment that the US economy will see a stronger-than-expect recovery is pushing the US dollar index above 91, its highest level in four weeks. Gold market will struggle as long as it is below $1,760 and if it breaches $1,700, then we may see prices getting pushed till $1,680-$1,660.The latest stimulus measures are bullish for gold in the long-term as they are expected to push inflation higher but in short term, gold is still struggling.


Silver


After receiving a wave of retail attention earlier this year and briefly trading above $30 an ounce, silver’s interest is fading. There is some shortage of as there is not much at any refineries and getting your hands on physical is still difficult. But Silver still needs weak US dollar to thrive and because of strong US dollar, silver is also struggling. Short-term, we are still bearish as in four hour chart, it is trading below 10 EMA.


oil


oil prices have retraced back ahead of the data release as the oil fear that OPEC+ may loosen its supply restrictions at a time when China’s thirst for oil imports appaears to be waning. Strong US dollar is also putting brakes on rally. Hedge fund has been net buyers since last 15 straight weeks and now they have turned from net buyers to net sellers. The uncertainty that the upcoming OPEC+ meeting that could result in an agreement to boost production is dampening prices.


Natural gas


Natural Gas prices have rebounded after cold weather came in US, however, the weather is expected to remain short-lived. Short-term momentum has turned positive as the fast stochastic generate a crossover buy signal and moved out of oversold territory. Supply has risen but lower than last week.


Recommendations


Buy | TGT: 228 | Stop loss: 219


has made ‘Hammer’ Candlestick pattern after falling from highs of 235 to 216. The formation of Hammer candlestick pattern suggests that buyers have taken control and the low of candlestick is the technical stoploss with which one can go long in So, we recommend buying with expected target of 228 and stoploss of 219 on a closing basis.


Sell Crude below 4,300 TGT: 4,100 | Stop loss: 4,400


Crude oil, after reaching overbought zone, has retraced back but trend reversal will only occur below recent swing low of 4,300. That would show classical breaking of higher high and higher low formation that crude oil is displaying on daily chart. 20DMA also comes around 4,350, so any trend reversal will only be validated below that region. So, we recommend short sell only below 4,300 for expected target of 4,100 and stoploss of 4,400.


Disclaimer: Bhavik Patel is Sr. Technical Analyst (Currencies/Commodities) at Tradebulls Securities. Views are personal.

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor




Read our full coverage on commodity trading



First Published: Thu, March 04 2021. 08:12 IST

- Advertisement -

Latest article

Crude Stockpiles Dropped 5.889 Million Barrels Last Week: EIA

Sign In/Free Sign Up 0 Stock Markets7 minutes ago (Apr 14, 2021 10:36AM ET) (C) Reuters. By Liz Moyer Investing.com -- U.S. oil stockpiles...

New Day, New All-Time Highs, And Gold In The Wings

S&P 500 went up yet again yesterday, and the corporate credit markets' non-confirmation resolved itself. While the same can't be said about small caps...

SpaceX raises $1.16 billion in equity financing

Sign In/Free Sign Up 0 Stock Markets17 minutes ago (Apr 14, 2021 10:25AM ET) (C) Reuters. SpaceX headquarters is shown in Hawthorne, California. (Reuters) -...

Federal Bureau of Prisons says Ponzi schemer Bernard Madoff has passed away

2/2 (C) Reuters. File photo of Bernard Madoff exiting the Manhattan federal court house in New York 2/2 By Jonathan Stempel and Bill Trott NEW YORK (Reuters)...

Global regulators to refine climate fallout on banks

Economy22 minutes ago (Apr 14, 2021 10:20AM ET) (C) Reuters. FILE PHOTO: A coal-burning power plant can be seen behind a factory in China's Inner...