MARKET DEVELOPMENT
Commodity Weekly Report 13 October 2013
Commodity Weekly Report 13 October 2013
13/10/2013 (Borneo Post) - The US continued its government shutdown and has turned into a worrisome situation for many bilateral partners that see this as a potential risk to global recession.
Commodity markets such as gold and crude are waiting for good news on whether the US Congress is able to begin negotiation and reach an agreement to raise debt limit ceiling. However, prices began to fall towards the weekend as traders showed their disappointment towards the silence among US lawmakers. Gold prices slid from 1,330 top to 1,260 bottoms throughout the week.
Traders are expecting the trend to reverse upwards should positive news flow in from US’ negotiation. Technically, we have also identified some supports at the 1,250 to 1,260. But breaking beneath this area will be risky lest it may drawdown to 1,210 levels as our next interest buying level. On the other hand, the market may recover from the current support levels should the US resolve the political impasse quickly. Such fundamental push will be possible to lift the prices upward to test 1,350 levels again.
WTI Crude prices have been trading between 101 and 104 regions for past few days before weekend. The market is well supported above the 100 benchmark for the time being but the ease in Syria’s crisis has put off buying interest. We reckoned the forthcoming reoperation of US government will lead to price jump in crude demands. Technically, piercing above 104 resistances will carry the potential to reach 108 levels again. Crude Palm Oil Futures (FCPO) on Bursa Derivatives climbed higher last week until Friday when some selling activities were seen initiating profit takings. December contract reached 2,395 on intra-week high and closed at 2,380 for the weekend.
This week, we reckoned the market will be meeting huge selling pressure above the 2,400 resistances while the 2,450 level will act as ultimate selling level. In our opinion, the market may be prone to turn down after mid-week if it still could not beat above 2,450 resistances. In such a case, driving forces for bearish trend could easily go down to 2,300 levels again.
Commodity markets such as gold and crude are waiting for good news on whether the US Congress is able to begin negotiation and reach an agreement to raise debt limit ceiling. However, prices began to fall towards the weekend as traders showed their disappointment towards the silence among US lawmakers. Gold prices slid from 1,330 top to 1,260 bottoms throughout the week.
Traders are expecting the trend to reverse upwards should positive news flow in from US’ negotiation. Technically, we have also identified some supports at the 1,250 to 1,260. But breaking beneath this area will be risky lest it may drawdown to 1,210 levels as our next interest buying level. On the other hand, the market may recover from the current support levels should the US resolve the political impasse quickly. Such fundamental push will be possible to lift the prices upward to test 1,350 levels again.
WTI Crude prices have been trading between 101 and 104 regions for past few days before weekend. The market is well supported above the 100 benchmark for the time being but the ease in Syria’s crisis has put off buying interest. We reckoned the forthcoming reoperation of US government will lead to price jump in crude demands. Technically, piercing above 104 resistances will carry the potential to reach 108 levels again. Crude Palm Oil Futures (FCPO) on Bursa Derivatives climbed higher last week until Friday when some selling activities were seen initiating profit takings. December contract reached 2,395 on intra-week high and closed at 2,380 for the weekend.
This week, we reckoned the market will be meeting huge selling pressure above the 2,400 resistances while the 2,450 level will act as ultimate selling level. In our opinion, the market may be prone to turn down after mid-week if it still could not beat above 2,450 resistances. In such a case, driving forces for bearish trend could easily go down to 2,300 levels again.