Friday 7 September 2018

Commodity outlook by Tradebulls Securities: Buy zinc, natural gas


Commodity outlook and trading ideas by Bhavik Patel - Sr. Technical Analyst (Commodities), Tradebulls:

The dollar index is evolving in a bull channel and inside Friday’s range just above the 95.00 marks. It is trading above the 50, 100 and 200-day simple moving averages suggesting bullish momentum. Bulls could not take over the levels of 95.70 and yesterday DXY quickly dropped to the levels of 95.

Buy Zinc
Target: Rs 180
Stop loss: Rs 172
Zinc lately has started outperforming Lead and we expect the momentum to continue for a couple of more trading session. It has closed above its short-term moving average of 13 and 20. RSI_14 has started curving upwards and is near 50. Zinc had made harami candlestick pattern after fall which indicates that sellers have exhausted and buying is slowly emerging. We recommend long position with a target of 180 and stop loss of 172.

Buy Natural Gas
Target: Rs 208
Stop loss: Rs 197
There continue to be bullish and bearish factors at play in the energy commodity. Inventories are at the lowest level in years, while production is at a record high. The correction from 208 to 201 was on account of China saying that they are considering slapping a 25 percent tariff on U.S. exports of LNG to the Asian nation. 

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