Strategy on Crude,Copper right now:Angel Commodities
Published on Tuesday, March 16th, 2010 at 10:23 PMAuthor: onlinecommoditycalls (1958 Articles)
The dollar index remained strong and stayed just under highs for most of the session. This was triggered by a slide in the euro against the dollar on lack of progress on a financial-aid package for debt-strapped Greece.
The dollar’s gains led to commodity prices slipping. The CRB index ended almost a percent lower. Crude too slipped, after hitting a session lows of USD 79.13 per barrel. The commodity traded only slightly above that level for most of the session. It is currently trading at USD 79.6 a barrel.
In an interview with CNBC-TV18, Naveen Mathur, VP, Angel Commodities gave his strategy on crude and copper.
Q: What is your strategy on crude right now?
A: We think the markets would be bearish; it would be a bearish note which will be continuing on the crude prices be it in the international markets or in the Indian markets too, predominantly the market are taking the dollar strength in view plus the supply side which is happening to a larger extent the excessive supply which is acting as a bearish signal to the overall price ofcrude, we see the overall markets on the negative bias for today plus the crude oil inventory which is going to be released tomorrow along with that OPEC meeting with discussion on the production quotas if that happens I think the overall sentiment would be bearish.
On international markets the current prices are around USD 79.82 levels, we see the markets would trend to be in USD 77.50 to USD 81 levels in the near term and thestrategy for Indian markets would be to sell crude March at 3660 to 3680 with stop loss of 3625 and target on downside would be 3590 and 3560.
Q: Would you be bearish on base metals as well, do you have any strategy on copper?
A: Strategy wise we should sell the intraday positon on MCX copper contract between 338-339 quoting at around 337 or so with a stoploss of 342 and the target somewhere in the range of 332-331 levels or so, its basically the strength in the dollar and the concern on rising inventories and the Chinese monetary tightening which may dampen the demand for the base metal sector also along withcrude is the bearish trend or the negative bias continuing.
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