10 commodities that can give up to 8% return this week

Commodity trading strategies

As the risks surrounding Covid-19 diminish with the introduction of vaccines, the growing demand for crude oil raises the problem of restarting "buy-in" deals. Some agricultural products also present great income opportunities. Here are 10 commodities that analysts believe may have returns of up to 8 percent this week:

Gold | Sell | Target: Rs 48,000| Disadvantage: 2%

MCX gold prices have been trading in a consolidation range for the past few days. The moving average crossover on the daily chart prevents prices from breaking past recent highs. The Rs 49,900 level will be a major resistance on a close base. Prices are likely to remain bearish as long as they do not cross this level at the close. It is recommended to "go short" gold (February) in the range of Rs 49,200-49,300 for a target of Rs 48,500-48,000 with a stop loss above Rs 49,900.

(Analysts: NS Ramaswamy, Head of Commodities, Ventura Securities)

Crude oil | Buy | Target: 4,000 rupees | Higher: 4%

Crude oil prices have been consolidating in a narrow range in recent days. On the downside, the main support is at Rs. 3,740, which is the 20-DMA level. Any price drop can be used as a buying opportunity this week. It is recommended to 'buy' crude oil (February) in the range of Rs 3800-3750 for a target of Rs 3,950-4000 with a stop loss below Rs 3,650.

(Analysts: NS Ramaswamy, Head of Commodities, Ventura Securities)

Copper | Buy | Target: Rs 645 | Higher: 6%

Copper prices have been hovering near the 20 MA level on daily charts for the last few trading sessions, now hovering near Rs 609. Prices need to confirm a strong closing level in either direction to confirm the following. stage of movement. With the rise in the medium term, prices are likely to spike only on the higher side. A copper "buy" (February) above Rs 620 is recommended for a target of Rs 635-645 with stop loss below Rs 605.

(Analysts: NS Ramaswamy, Head of Commodities, Ventura Securities)

Guar gum | Buy | Target: Rs 6,800 | Higher: 8%

Technically, NCDEX guar gum has broken above the 100-EMA level on the daily chart and continues above this level, which is now close to Rs 6,100. Also, on the weekly chart, prices have broken above the trend line, signaling the fresh start of a bullish move. A "buy" of guar gum (February) in the range of Rs 6,350-6,320 is recommended for a target price of Rs 6,650 / 6,800 with stop loss below Rs 6,050.

(Analysts: NS Ramaswamy, Head of Commodities, Ventura Securities)

Silver | Buy | Target: Rs 68,500 | Higher: 3%

This week, traders should follow the "buy dips" strategy in silver as one should look for an entry of around Rs 65,400-65,600 for a target of Rs 68,500 with a stop loss of around Rs 64,400. The 64,800-65,000 rupees levels will still be important, so there will be plenty of buyers entering these prices. If the market manages to break the Rs 67,800 mark, it is likely to go up.

(Analyst: Kshitij Purohit, Head of Commodities and Foreign Exchange at CapitalVia Global Research)

Natural gas | Sell | Target: Rs 172 | Disadvantage: 4%

Natural gas was trading lower after hitting Rs 195, and there is strong support at Rs 185, the 200-week moving average. According to the National Oceanic Atmospheric Administration, the weather is expected to be much warmer than normal in the Midwest for the next 6 to 10 and 8 to 14 days, a period that can be distinguished with the lower demand and volume of gas. This week, traders should monitor the support level at Rs 187 to sell natural gas. Traders should follow a stop loss of Rs 196 for a target of Rs 172.

(Analyst: Kshitij Purohit, Head of Commodities and Foreign Exchange at CapitalVia Global Research)

Nickel | Sell | Target: Rs 1,262.50 | Disadvantage: 5%

Nickel prices are approaching $ 20,000 a ton, which is essential to stimulate investment in new production. Back home, MCX Nickel closed at the high of a doji candle on the weekly charts. MCX Nickel rebounded from the support at Rs 1,305 and continued to close above Rs 1,325 last week. Immediate support is at the 15-SMA on the hourly chart, at Rs 1318. Technically speaking, traders should look at the selling strategy on rallies as some short opportunities can be found from the highs of the previous week. around Rs 1,335-1,330. The goal should be around. The target should be around Rs 1,265-1,262.50, whereas one must maintain a stop loss above Rs 1,341.

(Analyst: Kshitij Purohit, Head of Commodities and Foreign Exchange at CapitalVia Global Research)

Zinc | Sell | Target: Rs 201.50 | Downside: 6%

Zinc has bounced back from the crucial level of Rs 211 on Friday, and managed to settle above Rs 215 last week. Technically, zinc traded in the range of Rs 214-220 in the previous week, and is making lower low and lower high candlestick patterns on a weekly basis. Also, it gave a weekly closing below the 50-day SMA. Traders should look at any selling opportunity from higher levels this week. The optimal range to sell will be around Rs 218.50. A stop loss around Rs 225.70 is advised, with an aim for the next target below the November’s low of Rs 201.50.

(Analyst: Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research)

Lead | Buy | Target: Rs 167.75 | Upside: 3%

Lead futures have consolidated quite a bit last, with a rangebound momentum between Rs 163 and Rs 166. It bounced back from the Rs 165 mark in the past couple of sessions, and managed to close on a higher note at Rs 166.95 last week. On the weekly charts, the lead February contract has made a higher-high closing for a fourth straight week. This week, traders should go for a 'buy-on-dips' opportunity from the level of Rs 162.75-163.25, and aim for a target above Rs 167.75 with a stop loss below Rs 159.

(Analyst: Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research)

Aluminium | Sell | Target: Rs 156 | Downside: 3%

Aluminum is trading on a sideways-to-negative note after taking resistance of its Rs 50-day SMA, which placed at Rs 164.50. Overall, weakness in the metal pack and worries on the lockdown front will lead to aluminium following the same trend. Strong support on the downside is at Rs 157 and Rs 155. Resistance for the metal is at Rs 167 and Rs 170. For this week, traders should look forward for a 'sell on high' opportunity. Ideal selling positions should be initiated between the range of Rs 163.50 and 164, and one may aim for a target above Rs 156 with a stop loss around Rs 168.

(Analyst: Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research)

Also ReadInvestment Strategy and The basics of Stock Trading

  • Share
Subscribe now