Commodities markets plunged last Friday along with emerging market sell-off with traders parsing the implications of a Donald Trump presidency for the world’s largest economy.
MCX Gold surges to a high of Rs31326/Kg when Mr.Donald trump was leading the election results on 9th Nov 2016. Around 10.40p.m gold topped out and from there post the election announcement MCX Gold dropped to a low of Rs29269/Kg on last Friday (Nov 11,2016). The dollar rose to its strongest level since February. Bonds continued to get pounded, with losses exceeding $1 trillion this week.
In the International market gold down -3.32% and plunged from 1260 to 1225 USD and the crash resulted in lowest price since June 2016 as Dec rate hikes were jawboned more likely.
MCX Silver also made similar top on Nov 9th around 10.40a.m. Silver topped around Rs44,790/Kg and finally resulted in a Friday crash of -4.5%
MCX Crude on the other hand made a bottom on Nov 9th at Rs2,895/barrel around 10.30a.m and since then it is holding on to the lows. It is expected to hold on to the panic low which is made on nov 9th and could be a potential support zone.
MCX Copper had done a spectacular move from 310 levels to 405 levels. Since 24th october copper had breached June 2015 and later on the friday evening session copper crashed back to 374 levels with strong price rejection at the 400 levels thereby making a pin bar style setup on the daily charts. At this juncture sellers taken control and very much aggressive post the momentum rally. To be noted Copper is one-timeframing (i.e consecutively making higher high and lower high for the past 10 days).
Momentum Rally in MCX Nickel which started from 673 on 24th Oct ended on last friday session toughed a intraday high of 812 levels before crashing to a intraday low of 744. Madness and momentum is witness in this counter on downside. It is to be noted that previously we had a long term buy view on Nickel with a destination target of 806 and 895.
MCX Zinc is a solid uptrend since the last 11 months and the fridays exhaustion move from the peak 178 to 168 levels indicate a potential trend reversal. Sellers are taking control and currently they are very much aggressive in driving the price down.