Silver continued to recover on short covering
from last week's correction, and technical charts suggested the metal could
stabilize after bouncing off a key support level. Silver is closing the week
lower at 53716. This week we saw an early bounce to the 38.2% retracement level
of 59950 before setting fresh lows to 49751. We have an 8 month support line at
49500 drawn off the August and January lows. A break of this opens up a return
to 40000. The Gold Silver ratio is closing higher for the third week in a row
at 42.69.
The key topside resistance is seen at 45.68 which
is the 38.2% Fibo of the 68.34 to 31.68 down move. Now technically market is
trading in the range as RSI for 18days is currently indicating 39.08, where as
50DMA is at 60173.14 and silver is trading below the same and getting support
at 53534 and below could see a test of 53351 level, And resistance is now
likely to be seen at 54026, a move above could see prices testing 54335.
Trading Ideas:
Silver
trading range is 53351-54335.
Silver continued to recover on short covering
from last week's correction
Silver is having resistance at 54026 and support
at 53534 level.
Holdings at ishares silver trust rose by 18.20
tonnes to 10534.41 tonnes.
Copper ended positive as weak dollar helped to
spurn the negative tone set by other commodities and settle higher despite
further credit-tightening measures in China. The metal shrugged off China's
move late Thursday to raise banks' reserve ratio requirement for the fifth time
this year, as such a move had been widely anticipated and factored into prices
over the past few sessions.
Copper stockpiles at bonded warehouses in
Shanghai have fallen from a record since the beginning of May as consumers in
the world’s largest user of the metal draw down inventories. Stocks of copper
in LME warehouses rose to 468,525 tonnes, nearly 35 percent above levels seen
early in December. For today's session market is looking to take support at
400.8, a break below could see a test of 400 and where as resistance is now
likely to be seen at 402.6, a move above could see prices testing 403.6.
Trading
Ideas:
Copper trading range is 400-403.6.
Copper ended positive as weak dollar helped to
spurn the negative tone set by other commodities
Copper is taking resistance at 403.80 and support
is seen at 399.20
Copper weekly stocks at Shanghai exchange came
down by 17577 tonnes.
Zinc
gained on expectation that China, the largest user, may slow the pace of
monetary tightening after ordering banks to set aside more cash for the fifth
time this year. Hefty inventory levels of Zinc, which are now hovering around
16 year highs will not let prices of Zinc move sharply higher in coming days.
