Commodity Weekly Report: 21st August 2011

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WTI Crude oil prices fell sharp­ly on Friday due to fear of demands in global economy slowdown.

Last week, the market traded in the range between 79.36–88.97 before settling on the low side for weekend.

This week, we foresee a tech­nical rebound to occur but long-term traders should control their risk on the downside.

The support should lie firm at the 80.00 levels and range trading might possibly recover back to the 87.50 regions.

Gold prices hit a new histori­cal high due to fears of global uncertainty and a possible slowdown in economy.

The market reached a high of 1,877.90 on Friday and took many short-traders by sur­prise.

From now, the market has formed a new support at 1810.00 regions that might be tested in near future again.

In coming week, we expect gold prices to be trading side­ways while topside might test 1880.00 levels as marginal high before declining.

The rapid bulls should enter into a technical digestion unless major stock indices worldwide plunge further and trigger more fear into buying the yellow metal as a safe haven.

Crude palm oil (CPO) futures on Bursa Derivatives closed lower on Friday.

Although the current market sentiment seems to be relatively strong due to the current festi­val seasons, the effects on debt crisis in Europe and slow down in regional demands for ener­gies still weigh on CPO prices.

The overall trade volume last Friday was approximately 15,616 lots.

The CPO September contracts closed at 3,118, October contract closed at 3,035 while the most ac­tive November contract closed at 3,003.

This week, we foresee the market to still thread sideways between 2,910 and 3,090 levels.

Breaking the aforementioned support may attempt 2,830 lev­els and crossing above 3,090 benchmarks will initiate a new bullish sentiment.

Disclaimer: This report is written for general information only. No liability by the writers, publisher or any third party involved in the distribution of this work.

Dar Wong and Chong HC are the market strategists in APSRI on CPO markets.

Wong has 22 years of trading and hedging experiences while HC has traded for four years and now coaches institutional customers.

They can be reached at www.traderpromaster.com