LONG VIEW

COPPER
LIKELY TO TEST 250-52/246/242 UPTO 237 WITH ANY BREAK & CLOSE BELOW 258, WHILE CLOSE ABOVE 282/293 UPTREND AGAIN(FEB)

CRUDE OIL
LIKELY TO TEST 3350-25 WITH ANY CLOSE BELOW 3400 WHILE CLOSE ABOVE 3775/3915 UPTREND AGAIN
(DEC)

NICKEL
LIKELY TO TEST 970-75/940 UPTO 900 WITH ANY CLOSE
BELOW 1000(DEC)

OUT LOOK

February gold closed higher on Wednesday as it extends this week's rally above the 20-day moving average crossing at 806.80.
The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain bullish signaling
that sideways to higher prices are possible near-term. If February extends this week's rally, the reaction high crossing at 844.20
is the next upside target. Closes below November's low crossing at 780.40 would renew the decline off last month's high while
opening the door for a larger-degree decline into the end of the year. First resistance is today's high crossing at 822.80 then the
reaction high crossing at 844.20. First support is last Thursday's low crossing at 790.90 then last Monday's low crossing at
783.00.

March silver closed slightly lower on Wednesday as it consolidated some of Tuesday's rally but remains above the 20-day
moving average crossing at 14.618. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics
and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If March extends this month's rally,
the reaction high crossing at 15.220 is the next upside target. First resistance is Tuesday's high crossing at 14.975 then the
reaction high crossing at 15.220. First support is Monday's low crossing at 14.500 then last Thursday's low crossing at 14.125.

January crude oil closed sharply higher on Wednesday and above the 20-day moving average crossing at 92.43 confirming that
a short-term low has been posted. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics
and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. If January extends this week's
rally, the reaction high crossing at .9768 is the next upside target. A close below last week's low crossing at .8582 would renew
the decline off November's high. First resistance is today's high crossing at 947.24. Second resistance is the reaction high
crossing at 97.68. First support is the 20-day moving average crossing at 92.44 then the 10-day moving average crossing at
.8954.

January Henry natural gas closed higher on Wednesday and above the 10-day moving average crossing at 7.231 signaling that a
short-term low has been posted. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and
the RSI are turning bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving
average crossing at 7.587 are needed to confirm that a short-term low has been posted. If January extends the decline off
November's high, weekly support crossing at 6.801 is the next downside target. First resistance is today's high crossing at
7.416 then the 20-day moving average crossing at 7.587. First support is Monday's low crossing at 6.950 then weekly support
crossing at 6.801.

GENERAL MARKET CONDITIONS

The expected surprise came a day after as the Fed, European Central Bank, Bank of England, Bank of Canada, and Swiss National Bank all released plans to provide extra liquidity to money markets, auctioning off loans with comparatively low interest rates to ease tension in global money markets. This is an acknowledgement that their economies are in tatter. Base metals and equities will benefit more out this move than precious metals and energies. Base metals have taken the maximum thrash due to year-end liquidity pressures and they should benefit most. The fall in base metals over the past two months suggests the quantum of speculative interest. Retail investors should learn a thing or two from the slide in base metals.

Nothing new to comment on precious metals and base metals as they are expected to remain firm on the back of a weaker US dollar and higher crude oil prices. Technical charts in precious metals and energies are yet to show bearish divergence. Higher gold prices will not result in lower demand.

GOLD -- FEBRURAY FUTURE

As long as gold holds $807-$809 it will target $825 and $838. Only a consolidated fall below $807 will result in $802 and $790.70.

SILVER -- MARCH FUTURE

Silver has to close over $1376 today to target $1512 and $1554. On the lower side as long as $1446 holds, downside will be limited.

OUT LOOK

February gold closed lower on Tuesday as it consolidates some of Monday's rally but remains above the 20-day moving
average crossing at 806.70. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI
remain neutral to bullish hinting that a double bottom with November's low appears to be forming. Monday's close above the
reaction high crossing at 813.00 confirms that a short-term low has been posted while opening the door for a possible test of the
reaction high crossing at 844.20 later this month. Closes below November's low crossing at 780.40 would renew the decline off
last month's high while opening the door for a larger-degree decline into the end of the year. First resistance is today's high
crossing at 819.30 then the reaction high crossing at 844.20. First support is last Thursday's low crossing at 790.90 then last
Monday's low crossing at 783.00.

March silver closed lower on Tuesday as it consolidated some of Monday's rally but remains above the 20-day moving average
crossing at 14.633. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI
remain bullish signaling that sideways to higher prices are possible near-term. If March extends this month's rally, the reaction
high crossing at 15.220 is the next upside target. First resistance is today's high crossing at 14.975 then the reaction high
crossing at 15.220. First support is Monday's low crossing at 14.500 then last Thursday's low crossing at 14.125.

January crude oil closed higher on Tuesday as it extends last week's trading range but closed above the 10-day moving average
crossing at 89.22. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are
turning neutral to bullish signaling that a low might be in or is near. Closes above the 20-day moving average crossing at 92.39
are needed to confirm that a short-term low has been posted. If January extends the decline off November's high, the 50%
retracement level of this fall's rally crossing at .8374 is the next downside target. First resistance is last Thursday's high
crossing at 90.73. Second resistance is the 25% retracement level crossing at 91.51. First support is the 38% retracement level
crossing at 87.41 then last Thursday's low crossing at .85.82.

anuary Henry natural gas closed higher on Tuesday as it consolidated some of Monday's decline. The mid-range close sets the
stage for a steady opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that
sideways to lower prices are possible near-term. If January extends the decline off November's high, weekly support crossing at
6.801 is the next downside target. Closes above the 20-day moving average crossing at 7.628 would confirm that a short-term
low has been posted. First resistance is the 10-day moving average crossing at 7.239 then the 20-day moving average crossing
at 7.628. First support is Monday's low crossing at 6.950 then weekly support crossing at 6.801.

GENERAL MARKET CONDITIONS

The Fed surprised the markets by not surprising it as some traders positioned themselves for a surprise fifty basis point cut which did not happen and the sell off in equities and commodities. It’s back to square one for now and traders will be once again shredding every piece of US economic data and position themselves for the next interest rate meeting. We expect the Fed to continue with the quarter point easing till March 2008 and may be even till June and stop thereafter. In the first quarter of 2008 most of the central banks will have to make a choice between growth and inflation as crude oil prices were hovering around $60 a barrel in the first quarter of 2007 and lower base effect will result in higher headline inflation globally.

Base metals will be more volatile than precious metals and energies for the last three weeks of the year. In the first quarter of 2008, metals, commodities and emerging market stocks may get preference over equities, bonds and currency trading. The volatility, which we have seen in the first week of December in precious metals is just a trailer of the things to come in 2008. Silver has disappointed so far in 2007 and hopefully should be able to generate more investor interest in 2008. Globally physical silver stocks should decline.

COPPER -- MARCH FUTURE

Copper has to break $307.60 for $317.10 and $322.60. On the lower side, key short-term support at 293.30.

NYMEX CRUDE OIL -- FUTURE

Crude oil has to hold $86.32 to prevent a fall to $82. On the higher side only a break $92 will result in further gains.

LME inventory

LME Inventory :-
Copper +2725,
Zinc -225,
Tin -140,
Lead +425,
Nickel +468
Aluminum 0

LONG VIEW

CRUDE OIL
LIKELY TO TEST 3350-25 WITH ANY CLOSE BELOW 3400 WHILE CLOSE ABOVE 3775/3915 UPTREND AGAIN(DEC)

NICKEL
LIKELY TO TEST 970-75/940 UPTO 900 WITH ANY CLOSE BELOW 1000(DEC)