MCX COMMODITY MARKET TIPS & LEVELS - 19 DEC 2016

HIGH LIGHTS:-

• Gold prices gain in Asia as U.S.-China tensions simmer. 
• Oil prices rise in anticipation of tighter 2017 market. 
• LME Copper to See Range-Bound Trading
    

PRECIOUS METALS:- 

Gold gained mildly in Asia on Monday in safe haven buying as tension between China and the U.S. over the South China Sea simmers.  The latest flare-up appears resolved with China agreeing to return the US underwater drone that it seized in international waters earlier this week, the Pentagon said Saturday, but President-elect Donald Trump weighed in with a tweet telling Beijing to keep the prove it "stole."  Gold for February delivery on the Comex division of the New York Mercantile Exchange edged up 0.16% to $1,139/25 a troy ounce. Also on the Comex, silver futures for March delivery dipped 0.11% to $16.197 a troy ounce.  PRECIOUS LEVEL

CS GOLD (FEB) OVERVIEW:

TREND :  BEARISH 
RESIST 2: 27500 
RESIST 1: 27400 
SUP 1: 27000 
SUP 2: 26800 

CS SILVER (MARCH) OVERVIEW:

TREND : BEARISH 
RESIST 2: 40100 
RESIST 1: 39800 
SUP1: 39300 
SUP2: 39000 

BASE METALS:-

Market players are more likely to withdraw funds at the end of year. LME copper is expected to range between USD 5,600-5,670/mt with resistance on Monday and SHFE 1702 copper will move at RMB 46,00046,500/mt. In China’s domestic market, spot copper should trade at discounts of RMB 120-80/mt on Monday. 
Peru's finance minister said last Friday the country will step up copper production capitalizing on rising copper prices, wenhua.com reported. Peru’s copper output jumped 38% year-on-year in October, mainly contributed by MMG’s Las Bambas and Freeport McMorran Inc’s Cerro Verde copper mines. 
Copper prices have been rising after Trump won US presidential election since the president-elect’s expected fiscal expenditure plan may drive up commodity prices. Peru is expected to be the second largest copper producing country this year thanks to higher output.  

BASE METAL LEVELS

CS COPPER (FEB) OVERVIEW:

TREND : BEARISH 
RESIST 2:392 
RESIST 1:389 
SUP1:378 
SUP2:375 

CS NICKEL (DEC) OVERVIEW:

TREND :  BEARISH 
RESIST 2: 776 
RESIST 1: 766 
SUP1: 748 
SUP2: 739 

CS ZINC (DEC)OVERVIEW:

TREND :  BEARISH 
RESIST 2:190.00 
RESIST 1:188.00 
SUP1:181.00 
SUP2:179.00 

CS LEAD (DEC) OVERVIEW: 

TREND :  BEARISH 
RESIST 2: 155.00 
RESIST 1: 153.00 
SUP1: 149.00 
SUP2: 147.00

CS ALUMINIUM (DEC) OVERVIEW: 

TREND : BEARISH 
RESIST 2: 119.00 
RESIST 1: 118.00 
SUP1: 116.00 
SUP2: 115.00 

ENERGIES:- 

Oil prices rose on Monday in anticipation of tighter crude supply going into 2017 following the decision by OPEC and other producers to cut output to prop up prices. Traders said the higher prices in front-month crude futures were due to expectations of a tighter market. 
The Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia have announced cutbacks of almost 1.8 million barrels per day (bpd) in oil production from January 2017 in an effort to bolster prices to reduce rampant global overproduction which has seen output outstrip consumption for over two years. 
With investors now expecting a relatively high level of compliance with the production cut agreements, prices should be well supported, ANZ bank said on Monday. 

ENERGY LEVELS

CS CRUDE OIL (DEC) OVERVIEW:                           

TREND : BULLISH 
RESIST 2:3700 
RESIST 1:3660 
SUP1:3550 
SUP2:3500 

CS NATURAL GAS (DEC) OVERVIEW: 

TREND : BEARISH 
RESIST 2:236.00 
RESIST 1:232.00 
SUP1:224.00 
SUP2:220.00

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