Commodities' prices continue their rally towards new high.
Oil hit yesterday a new high at 104.95 $, pushed by a likely supply cut by OPEC due to a potential oil demand reduction in the close future. We expect it to trade higher again and to move to 107 $ per barrel. A weaker dollar and speculation will manage the rise of crude prices for the next days.
Gold hit a new record level yesterday, again pushed by a weak dollar and by super inflation concerns. It is well known that Gold represents a safe harbour against an inflation storm. It seems now that more and more ships are docking there. The 1000 $ barrier will be forced soon, a weaker dollar will take the gold to a 4 digit figure by the end of the week.
Today the ECB policy makers will meet to decide on whether reduce its main lending rate or not. Everybody expects they will not make any cut, so we are ready to see the dollar at 1.55 vs Euro.
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Details
This contract is one of the most worth, liquid, technical and volatile
of the whole financial markets. The price of the front month represents
the official price of the New York traded crude oil: this is the most
actively traded commodity.
Our trading system is based on physical delivered crude oil (CL) and
always on the most liquid consecutive month traded on electronic market
via the CME Globex trading platform. This is an overnight trading system.
How it works
Trading day starts at 18:00 NY time until 17:15 (next day) from Sunday
to Friday. Our signals are tradable during this time at earliest
convenience of the client or its broker. Signals are usually sent
before 8:00 GMT and are valid until 22:00 GMT. Currency = USD $ Contract size = 1,000 barrels (approx 42,000 gallons)
Minimum price fluctuation (tick) = 0,01 USD
The trading system is based on a trend following
approach. We strictly follow this rule so we tend to reduce the number
of trades during the year, to provide entries on significant
levels where we believe (statistically) that the market will bump or
break.
Tick value = 10 USD
For more technical info click on www.nymex.com
Maximum Stop loss = 1,500 USD
Initial Capital required = 12,000 USD
Oil prices, hit a new record high today at $108, a new inflation-adjusted record and fifth new high in the last six sessions on an upbeat report on wholesale inventories.
Analysts believe speculative investing attracted by the weak dollar is the primary reason oil has risen in recent months. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling.
The dollar fluctuated against the euro on Monday, many investors believe the greenback is likely to keep falling as the Fed continues to cut rates. Many analysts believe the rise in crude prices is not supported by the market's underlying fundamentals, noting that supplies are generally rising while demand is falling.
Our analysis on the Gold Composite Future has been very efficient (click here to view our latest report) as prices kept raising.
Short term indicators continue to be positive as gold trades near their highest price in history. Gold could potentially experience one of the biggest upside moves since 1980. The potential exists for a large rise in the gold price - possibly similar to the 1980 rise in which gold reached a record $850. If gold is able to attract enough speculators to the market the potential exists for gold to rise well over $1,000.
We expect the Gold future to trade in a limited range between 940 and 1.000 dollars an ounce.
Resistance: $1,000
Support: $940
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