Base Metals Technical view As on 18th March 09

Metals: LME copper steady vs PM kerb, last +50 cents at $3,800/ton. Rally likely to run out of steam, prices expected to fall back around $3,100/ton in near term, says ANZ commodity analyst Mark Pervan. Adds recent China data on copper imports, production difficult to digest, blurred by holidays, shutdowns last year due to snowstorms, Sichuan earthquake making interpretation hard to read. Says positive cues fast disappearing; notes jump in China copper output was due to tight scrap, low treatment, refining charges rather than rising demand. Arbitrage with LME discount to Shanghai Futures Exchange now closed.

Energy Technical Forcast for 18 March 09

Weekely Chart as on Monday

Oil fell from a three-month high after U.S. inventories posted a larger-than-expected gain and Japanese refiners processed less crude. U.S. oil stockpiles increased 4.66 million barrels to 349.9 million barrels last week, the most in almost two years, the Washington-based American Petroleum Institute said in a report after the close of trading yesterday. Japanese refiners operated plants at 78.4 percent of capacity last week, down 3.8 percentage points from the week before, according to data released today by the Petroleum Association of Japan.

Trading Call : Crude Oil April Sell @ 2550 Targeting @ 2510 - 2470 - 2425 Stop @ 2575

Bullions Technical Forcast for 18th March 09

Mondays Weekly Chart

Spot gold steady after overnight fall on low U.S. inflation, surge in U.S. housing starts, unexpected bounce in German investor sentiment, which combine to undermine gold's safe-haven appeal, says HSBC analyst James Steel. Outcome of FOMC meeting unlikely to have impact on gold, HSBC doesn't expect change in interest rate policy; meeting to conclude later in global day. IMF officials expect global economy to contract 0.6%, down from sluggish 0.5% growth in forecast made in January. Steel adds slower economy, disinflationary environment consistent with lower gold prices. On plus side, investor demand for ETF remains brisk, but rise in ETF gold holdings may be partly offset by mounting scrap supplies, continuing weakness in global jewelry demand. .

Trading Call : Gold April Sell @ 15080 targeting 15000 - 14950 - 14860 S/L @ 15160

Silver May Sell @ 21630 targeting 21500 - 21370 - 21240 S/L @ 21740