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CAPITALSTARS – MCX COMMODITY MARKET NEWS & LEVELS – 27 JANUARY 2020

Mcx2-1

Concerns Over Coronavirus Boosts Gold.

COMEX Gold futures soared to fresh three week highs on Friday following a surge in worries over the spread of Coronavirus. Equities stayed nervous and the metal jumped for a second session to close at $1571 per ounce, up 0.36% on the day. MCX Gold futures closed at Rs 40355 per 10 grams, up 0.18% on the day as a recent break above Rs 40000 per 10 grams extended. Coronavirus has been confirmed in Southern California — making it the third case in the United States. This can keep the COMEX Gold futures further supported in the near term. Forty-one people in China have died from coronavirus, which originated in Wuhan, a city in Hubei province. More than 1,370 cases have been confirmed worldwide, the vast majority in China, and others predominantly across Asia. However, the virus reached Europe yesterday, with three confirmed cases in France, and has also been reported in Australia and the US. In total, 14 countries have been affected. The World Health Organization has not declared a crisis, but is monitoring the situation. In China, 30 provinces, municipalities and autonomous regions have now raised their public health alert to level 1, the highest level.

Crude Falls Near Three Month Low.

WTI crude oil futures crashed in the last session amid demand worries as traders focussed on the spread of the Coronavirus to affect the global economy. WTI Crude extended losses under $60 per barrel as International Energy Agency expected the global oil market to be in surplus by 1 million bpd in the first half of this year. The commodity tumbled 2.50% to close at $54.20 per barrel – near its three month low. MCX Crude oil futures closed at Rs 3881 per barrel, down 1.27% on the day. Oil had surged earlier in the week as Libya’s National Oil Corp declared force majeure on the loading of oil from two major oilfields after the latest development in a long-running military conflict.The US crude oil inventories decreased last week, according to data released by the Energy Information Administration (EIA) on Thursday. Commercial crude oil inventories declined by 0.4 million barrels, or 0.1%, to 428.1 million barrels for the week ending January 17. The US crude oil imports fell by 120,000 barrels per day (bpd) to 6.43 million bpd while crude oil production in the U.S. remained unchanged at 13 million bpd for the week ending Jan. 17, the EIA data showed.

Copper Slides Well Under Rs 440 Per Kg On MCX.

COMEX Copper futures tanked 1.60% to close at a seven week low of $2.68 per pound on Friday as US equities slipped firmly into negative territory. MCX Copper futures closed at Rs 438.20 per kg, down 1.70% on the day. The Dow dropped 0.60% while the Nasdaq and the S&P 500 slumped 0.9% each. Markets remained worried about the impact of the coronavirus outbreak. Mining major Freeport Mcmoran (FCX) reported that capital expenditures for the year 2020 are expected to approximate $2.8 billion, including $1.8 billion for major projects primarily associated with underground development activities in the Grasberg minerals district in Indonesia and completion of the Lone Star copper leach project in Arizona, and exclude estimates associated with the new smelter in Indonesia.However, during 2019, FCX advanced initiatives in its North America and South America mining operations to enhance productivity, expand margins and reduce the capital intensity of the business through the utilization of new technology applications in combination with a more interactive operating structure. A series of action items have been identified, prioritized and are being implemented. Based on the opportunities identified to date, FCX has incorporated higher mining and milling rates in its future plans, resulting in estimated incremental production of approximately 100 million pounds of copper in 2021 and approximately 200 million pounds in 2022.

Precious Metals

CS GOLD (FEB) OVERVIEW:
TREND : BULLISH
RESIST 2: 40700
RESIST 1: 40500
SUP 1:40200
SUP 2: 40000

CS SILVER (MAR) OVERVIEW:
TREND : SIDEWAYS
RESIST 2:47400
RESIST 1:47200
SUP 1: 46800
SUP 2: 46600

Base Metals

CS COPPER (JAN) OVERVIEW:
TREND : BEARISH
RESIST 2:442
RESIST 1:440
SUP 1:435
SUP 2:430

CS NICKEL (JAN) OVERVIEW:
TREND : BEARISH
RESIST 2: 980
RESIST 1:970
SUP 1:940
SUP 2:920

Energy

CS CRUDE OIL (FEB) OVERVIEW:
TREND : BEARISH
RESIST 2:3920
RESIST 1:3850
SUP 1: 3780
SUP 2: 3750

CS NATURAL GAS (JAN) OVERVIEW:
TREND : BEARISH
RESIST 2:142
RESIST 1:140
SUP 1: 132
SUP 2: 130


MCX CRUDE OIL FEB on FRIDAY as seen in the Daily chart opened at 3951 levels and made day low of 3850 levels. During this period this commodity made high is 3995 levels and finally closed at 3873 levels. Now, there are chances of down movement technically & fundamentally.

Screenshot (787)

DAILY RECOMMENDATION: SELL CRUDE OIL FEB BELOW 3850 LEVELS FOR TARGET OF 3750/3700 WITH SL 4000 OF LEVELS.

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