MARKET DEVELOPMENT
Commodity Weekly Report April 21 2013
Commodity Weekly Report April 21 2013
22/04/2013 (Borneo Post) - Gold prices continued to plummet from last Monday after the China data.
The Chinese government reported the first quarter growth of 7.7 per cent which marked a fourth consecutive gain at less than eight per cent in the past decade.
Gold and crude prices tumbled in fear of contracting demands.
Analysts expected global policymakers might adopt more easing stimulus to recover commodity demands in coming months.
European Central Bank (ECB) president Mario Draghi commented that the economic situation in the 17-nations remained with no improvement since the last meeting on April 4.
Gold prices hit 1,321 bottoms before it closed at 1,399 levels on Friday.
The market was in oversold sentiments from panic selling last week but had been slowing down amid technical recovery.
This week, we reckon the market will consolidate around 1,410 regions again before dropping back to 1,350 levels.
Breaking above 1,425 resistances could prompt new buying interest to attempt the 1,455 targets.
WTI crude prices reached 85.61 lows last week and met bargain hunting from the bottoms.
This week, we reckon the trend will trade from 86 to 89 ranges in consolidation.
Moving up above 89 immediate resistances may initiate further recovery to 90.20 targets.
Technically, we expect the crude demands will be weakened for few weeks in tandem with fundamental influence from Saudi Arabia cutting oil supply.
China’s slowdown adds onto the selling pressure.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives dropped to a four month low last week and July contract closed at 2,294 for the weekend.
The market remains in bearish sentiment in-line with commodities slump after China reported growth below eight per cent.
This week, we reckon the trend will hold at 2,250 levels while topside may recover at 2,350 regions.
Abandon your long-view if the market breaks below 2,250 supports.
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
The Chinese government reported the first quarter growth of 7.7 per cent which marked a fourth consecutive gain at less than eight per cent in the past decade.
Gold and crude prices tumbled in fear of contracting demands.
Analysts expected global policymakers might adopt more easing stimulus to recover commodity demands in coming months.
European Central Bank (ECB) president Mario Draghi commented that the economic situation in the 17-nations remained with no improvement since the last meeting on April 4.
Gold prices hit 1,321 bottoms before it closed at 1,399 levels on Friday.
The market was in oversold sentiments from panic selling last week but had been slowing down amid technical recovery.
This week, we reckon the market will consolidate around 1,410 regions again before dropping back to 1,350 levels.
Breaking above 1,425 resistances could prompt new buying interest to attempt the 1,455 targets.
WTI crude prices reached 85.61 lows last week and met bargain hunting from the bottoms.
This week, we reckon the trend will trade from 86 to 89 ranges in consolidation.
Moving up above 89 immediate resistances may initiate further recovery to 90.20 targets.
Technically, we expect the crude demands will be weakened for few weeks in tandem with fundamental influence from Saudi Arabia cutting oil supply.
China’s slowdown adds onto the selling pressure.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives dropped to a four month low last week and July contract closed at 2,294 for the weekend.
The market remains in bearish sentiment in-line with commodities slump after China reported growth below eight per cent.
This week, we reckon the trend will hold at 2,250 levels while topside may recover at 2,350 regions.
Abandon your long-view if the market breaks below 2,250 supports.
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