MARKET DEVELOPMENT
Commodity Weekly Report May 12 2013
Commodity Weekly Report May 12 2013
13/05/2013 (Borneo Post) - The Dow Jones markets and Asia equities have been climbing in bullish sentiments due to improvement in US economy. Fed chairman reiterated of continual stimulus at US$85 billion monthly and low interest rates to suppress the unemployment rate below 6.5 per cent.
The US dollar/Japanese yen rate also crossed above 100 benchmarks in a four year record and weakening yen helped in lifting stocks in Asia hours. We foresee regional stock markets will continue in bullish trends in coming week.
Gold prices have faced selling pressure amid flight to quality and also rising dollar. This week, we foresee the resistance will act strong at 1,450 to 1,455 regions while bears will emerge to liquidate losses from previous tops.
As the stock markets climb higher, the yellow metal will descend further to our target prices identified at T1 – 1,410 and T2 – 1,380. Abandon your short-view if the market penetrates above 1,460 levels.
WTI Crude prices have behaved in resilient patterns at 96 areas. Despite higher dollar, this market has been staying strong due to tremendous cut in inventory holdings. The Energy Information Agency (EIA) reports the crude inventory for week ended May 4 contracted to 200,000 barrels and much below the expectation of 2.1 Million barrels. This week, we reckon the market will trend form 93 to 98 ranges with some bullish signs expected to be seen in early week.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed higher on last Friday due to short coverings in market. The July contract closed at 2,320 with approximately 32,000 contracts traded.
This week, we expect the market will continue to surge up. Breaking above 2,340 immediate resistances may aim at 2,400 regions while downside support lies at 2,230 to 2,250 levels.
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 US dollar/Japanese yen rate also crossed above 100 benchmarks in a four year record and weakening yen helped in lifting stocks in Asia hours. We foresee regional stock markets will continue in bullish trends in coming week.
Gold prices have faced selling pressure amid flight to quality and also rising dollar. This week, we foresee the resistance will act strong at 1,450 to 1,455 regions while bears will emerge to liquidate losses from previous tops.
As the stock markets climb higher, the yellow metal will descend further to our target prices identified at T1 – 1,410 and T2 – 1,380. Abandon your short-view if the market penetrates above 1,460 levels.
WTI Crude prices have behaved in resilient patterns at 96 areas. Despite higher dollar, this market has been staying strong due to tremendous cut in inventory holdings. The Energy Information Agency (EIA) reports the crude inventory for week ended May 4 contracted to 200,000 barrels and much below the expectation of 2.1 Million barrels. This week, we reckon the market will trend form 93 to 98 ranges with some bullish signs expected to be seen in early week.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives closed higher on last Friday due to short coverings in market. The July contract closed at 2,320 with approximately 32,000 contracts traded.
This week, we expect the market will continue to surge up. Breaking above 2,340 immediate resistances may aim at 2,400 regions while downside support lies at 2,230 to 2,250 levels.
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.