gold and silver chart

This is MCX gold day chart

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This is MCX silver day chart

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energy

Oil futures fell sharply Monday, extending their retreat from $100 as investors sold on concerns that a cooling economy will curb demand for oil and gasoline.

MCX Crude Oil Jan fell after registering a high of Rs. 3860 per barrel towards the low and traded below 3760 with loss. Similarly Nymex Crude oil traded below $95.50 per barel

According to CNN, five Iranian boats harassed three U.S. naval ships in the Strait of Hormuz on Saturday, nearly resulting in an actual conflict. Is Iran eager for a fight or just trying to prop up oil prices? March crude oil is trading lower anyway.

The latest 6 to 10 day forecast from the National Weather Service expects above average temperatures for the eastern half of the U.S. March heating oil is steady to lower.

Traders remained focused on last Friday's Labor Department jobs report, which showed that employers added far fewer jobs last month than expected. They seemed to shrug off news of a confrontation Sunday between U.S. and Iranian warships in the Strait of Hormuz.

A stronger dollar Monday also weighed on oil prices. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the greenback is falling. Many analysts believe the weakening dollar helped draw speculative investors into

oil markets this fall and winter, driving oil prices above $100 a barrel last week.



MCX Crude Oil Jan (Daily Chart)



Technical Outlook:

Momentum studies have turned bullish; will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Crude Oil Jan: Sell at 3770-3790 for target of 3680 and 3630 with stop loss below 3820



MCX Natural gas Jan (Daily Chart)



Technical Outlook:

Momentum studies have turned bullish; will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Natural Gas Jan: Sell at 312.5-313 for the target of 308 and 302 with stop loss at 316.7

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Base Metals

Base metals on MCX, LME were off day's high due to inventory rises on LME monitored warehouses.

On LME monitored warehouses, copper stocks increased by 2,400 tonnes to 2,01,000 tonnes, Nickel by 342 tonnes to 48,126 tonnes, Lead by 2,050 tonnes to 48,900 tonnes and Zinc by 6,775 tonnes to 95,150 tonnes.

Comments by Treasury Secretary Henry Paulson Monday suggesting there is no simple fix for the nation's housing crisis added to worries fed by last Friday's Labor Department jobs report.

Last week the metal complex finished on a subdued note as sentiments were dampened by negative US employment data. As per reports, US unemployment rate stood at 5%, the highest in two years. In December the number of jobs added were a meager 18,000 as against a forecast of 70,000.

Meanwhile being the start of the year there could be some index re-balancing in international markets that could influence prices in domestic bourses, says a Mumbai-based trader. He adds there could be some Chinese buying as well ahead of their Lunar New Year in February.


MCX Copper Feb (Daily Chart)

Technical Outlook:

Momentum studies are still bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Copper Feb:



MCX Zinc Jan (Daily Chart)

Technical Outlook:

Momentum studies are still bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Zinc Jan:

MCX Nickel Jan (Daily Chart)



Technical Outlook:

Momentum studies are still bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Nickel Jan: Buy at 1090-1080 for the target of 1135 and 1160 with stop loss at 1065

MCX Lead Dec (Daily Chart)

Technical Outlook:

Momentum studies are still bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Lead Jan: Buy at 101 for the target of 103.80 and 105.50 with stop loss at 99.60

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bullion

Indian spot gold traded lower tracking global leads and as local investors opted to book profits at elevated price levels. MCX Gold Feb contract was trading in the range of Rs. 10830-10950 per 10 gram with a loss. MCX Silver March also traded weak in the range of Rs. 19750-20050 per kg.

International spot gold traded below $860 levels as a hardening greenback and softening crude prices reduced the yellow metal's appeal as a hedge against inflation.

The dollar rebounded as technical charts used by some traders indicated recent losses may have been excessive. Dollar- denominated gold tends to fall when the currency rises as this makes it more expensive for holders of other currencies. Still, the prospect of U.S. interest rate cuts limited gold's losses.

A U.S. government report on Jan. 4 showed unemployment rose to the highest in two years, raising the prospect of further interest rate cuts to stimulate the economy. The report showed payrolls grew by 18,000 last month, about one-quarter the rate forecast by economists, and unemployment increased to 5 percent.

MCX Gold Feb (Daily Chart)

Technical Outlook:

Momentum studies are still bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative. The 9-day RSI over 70 indicates the market is approaching overbought levels. It is a mildly bearish indicator.

Recommendations:

MCX Gold Feb: Sell at 10940-950 for the target of 10900 and 10870 with stop loss at 10980

MCX Silver Mar (Daily Chart)



Technical Outlook:

Momentum studies are still bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative. The 9-day RSI over 70 indicates the market is approaching overbought levels. It is a mildly bearish indicator.

Recommendations:

MCX Silver March: Sell at 19990-20050 for the target of 19900 and 19820 with stop loss at 20090

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Technicals – MCX (Intra day calls)

CRUDE OIL (January) BULLISH ABOVE 3770BEARISH BELOW 3754



GOLD (February) BULLISH ABOVE 10898 BEARISH BELOW 10862



SILVER (March) BULLISH ABOVE 19910 BEARISH BELOW 19825



COPPER (February) BULLISH ABOVE 275 BEARISH BELOW 274.20



LEAD (January) BULLISH ABOVE 99 BEARISH BELOW 98.60



NICKEL (January) BULLISH ABOVE 1117 BEARISH BELOW 1112



ZINC (January) BULLISH ABOVE 99 BEARISH BELOW 98.60

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OUT LOOK

February gold closed lower on Monday as it consolidated some of last week's rally but remains above resistance marked by
November's high crossing at 855.00. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics
and the RSI are overbought but remain neutral signaling that sideways to higher prices are possible near-term. If February
extends last month's rally, weekly resistance crossing at 874.00 is the next upside target. Closes below the 10-day moving
average crossing at 842.90 would signal that a double top with November's high has been posted. First resistance is last
Thursday's high crossing at 872.90 then weekly resistance crossing at 874.00. First support is the 10-day moving average
crossing at 842.90 then the 20-day moving average crossing at 824.80.

March silver closed lower on Monday and as it consolidated some of last week's rally. The low-range close sets the stage for a
steady to lower opening on Tuesday. Stochastics and the RSI are overbought but remains neutral to bullish signaling that
sideways to higher prices are possible near-term. If March extends last week's rally, the 75% retracement level of the
November-December decline crossing at 15.768 is the next upside target. Closes below the 20-day moving average crossing at
14.704 would confirm that a short-term top has been posted. First resistance is last Friday's high crossing at 15.570 then the
75% retracement level crossing at 15.768. First support is the 10-day moving average crossing at 15.010 then the 20-day
moving average crossing at 14.704.

February crude oil closed sharply lower on Monday due to profit taking and closed below the 10-day moving average crossing
at 96.37 signaling that a short-term top has likely been posted. The low-range close sets the stage for a steady to lower opening
on Tuesday. Stochastics and the RSI are overbought, diverging and are turning bearish signaling that sideways to lower prices
are possible. Closes below the 20-day moving average crossing at 93.56 are needed to confirm that a top has been posted If
February renews last week's rally above November's high crossing at 98.12, upside targets will be hard to project now that
February has traded into uncharted territory. First resistance is last Thursday's high crossing at 100.09. First support is today's
low crossing at 94.47. Second support is the 20-day moving average crossing at 93.57.

February Henry natural gas closed higher on Monday as it consolidates above the 38% retracement level of the November-
December decline crossing at 7.759. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics
and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If
February extends this week's rally, the 50% retracement level of the November-December decline crossing at 8.010 is the next
upside target. First resistance is last Thursday's high crossing at 7.980 then the 50% retracement level crossing at 8.010. First
support is last Friday's low crossing at 7.500. Second support is the 10-day moving average crossing at 7.490.
CURRENCIES

The March Dollar closed higher on Monday as it consolidated some of last week's decline. The high-range close sets the stage
for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold but remain to bearish signaling that sideways
to lower prices are possible near-term. If March extends last week's decline, November's low crossing at 74.80 is the next
downside target. Closes above the 20-day moving average crossing at 76.75 would temper the near-term bearish outlook in the
market. First resistance is the 10-day moving average crossing at 76.59 then the 20-day moving average crossing at 76.76. First
support is last Friday's low crossing at 75.45. Second support is November's low crossing at 74.80.

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