WEEKLY COMMODITY OUTLOOK (12-07-10)


GOLD:- Gold has made the low of 1185 against our expectation of 1186-1166 & bounced off sharply .We are expecting this bounce to terminate in the 1220-1225 range. Then it should unfold a downward wave which must go below 1185 & is likely to terminate above 1165.We see a sharper bounce from there as larger degree wave is terminating over there.




SILVER:-  Silver is forming the flat correction as reported last week. We do not see it bouncing above the 18.40 & will start downward wave which may terminate below 17.195 & above 16.65.We are expecting a sharp bounce from there as larger degree correction is terminating there



CRUDE:- After breaking out from the RISING WEDGE formation it made the bottom at 71.48 & since then it is in pull back to make the high of 76.48.We do not see it crossing 76.85 & expect it to react to minimum 73.15, ideally to 72.15 & in bearish case to 71.10 in lower momentum & time consuming then what it took in 71.09 to 76.48.




NATURALGAS:- Last week it has breached the support of 4477 & made the new low at 4339.It may further extend its decline till the support of 4200 but then it will consolidate with the support of 4200 & resistance of 4800.





COPPER:- It is forming a zigzag correction on the upside & in which it is forming the c3 or c5.W e see it going to the 309-314 level & not beyond 319 in any case. It should then react vertically down as shown in the chart.




LEAD:- In line with the copper it is also forming the zigzag correction on the upside. It has already completed the wave A & B of zigzag. Within wave C it is in the third wave. We are looking for the initial dip to 1810 & then rising to peak around 1900 but it will not cross 1930.





NICKEL:- Nickel has been unfolding the flat correction on upside & has last week opened up the leg C. We expect this leg to reach minimum 21250 in 5 to 8 days.





ZINC:- Zinc is forming a upward zigzag in tandem with the copper & lead. It is in the terminal stage of the wave C & we see it reaching the target in the range of 1925-1950 & then commence the vertical decline.



 

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