MARKET DEVELOPMENT
Commodity Weekly Report May 5 2013
Commodity Weekly Report May 5 2013
06/05/2013 (Borneo Post) - The US non-farm payroll for April grew 165,000 while unemployment hit four-year low at 7.5 per cent.
Dow Jones Average Index (DJIA) crossed above 15,000 benchmarks for the first time amid falling US treasuries.
Last Thursday, the Federal Reserve released its Federal Open Market Committee (FOMC) statement in maintaining the monthly stimulus of US$85 billion with no added surprise.
In eurozone, the central bank cut 25 basis points and spiked the stock markets.
Hence, we foresee Asia stock markets would be resilient in bullish trend in coming week. Gold prices pulled up to 1,488 regions on Friday and fell by reacting to higher treasuries yields.
This week, we reckoned the market was preparing to see lower grounds so long as the immediate resistance at 1,490 levels was not violated.
On moving down, we are expecting the downtrend to test 1,440 as our immediate target and subsequent to 1,400 as secondary targets.
In overall, gold prices are still very mixed in market but prone to be trading in large consolidation below 1,500 benchmarks for a while.
WTI Crude prices broke above previous resistance at 94.80 levels and reached 96 highs on Friday.
The better than expected US payroll data boosted the stock market as well as commodity prices on high bands. This week, it is hard to predict the probable trend but we reckoned the range might move from 92.50 to 97.50 regions.
In any case, the continual strength in DJIA trend in climbing higher might help to lift the crude prices on higher demands if US economic recovery persists.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives continued to weaken substantially due to the lowering demands in soy bean oil and the slowdown in China’s services index.
The July contract closed at 2,254 on Friday amid increasing selling pressures.
This week, we foresee the market would be bias to bearish outlook with potential to reach 2,210 regions.
Topside resistance caps at 2,340.
Disclaimer: This report is written for general information only. No liability by the writers, publisher or any third party involved in the distribution of this work. Dar Wong and Chong HC are the market strategists in APSRI on CPO markets.
Wong has 22 years of trading and hedging experiences while HC traded for four years and now coaches institutional customers. They can be reached at www.traderpromaster.com.
Dow Jones Average Index (DJIA) crossed above 15,000 benchmarks for the first time amid falling US treasuries.
Last Thursday, the Federal Reserve released its Federal Open Market Committee (FOMC) statement in maintaining the monthly stimulus of US$85 billion with no added surprise.
In eurozone, the central bank cut 25 basis points and spiked the stock markets.
Hence, we foresee Asia stock markets would be resilient in bullish trend in coming week. Gold prices pulled up to 1,488 regions on Friday and fell by reacting to higher treasuries yields.
This week, we reckoned the market was preparing to see lower grounds so long as the immediate resistance at 1,490 levels was not violated.
On moving down, we are expecting the downtrend to test 1,440 as our immediate target and subsequent to 1,400 as secondary targets.
In overall, gold prices are still very mixed in market but prone to be trading in large consolidation below 1,500 benchmarks for a while.
WTI Crude prices broke above previous resistance at 94.80 levels and reached 96 highs on Friday.
The better than expected US payroll data boosted the stock market as well as commodity prices on high bands. This week, it is hard to predict the probable trend but we reckoned the range might move from 92.50 to 97.50 regions.
In any case, the continual strength in DJIA trend in climbing higher might help to lift the crude prices on higher demands if US economic recovery persists.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives continued to weaken substantially due to the lowering demands in soy bean oil and the slowdown in China’s services index.
The July contract closed at 2,254 on Friday amid increasing selling pressures.
This week, we foresee the market would be bias to bearish outlook with potential to reach 2,210 regions.
Topside resistance caps at 2,340.
Disclaimer: This report is written for general information only. No liability by the writers, publisher or any third party involved in the distribution of this work. Dar Wong and Chong HC are the market strategists in APSRI on CPO markets.
Wong has 22 years of trading and hedging experiences while HC traded for four years and now coaches institutional customers. They can be reached at www.traderpromaster.com.