8th December 2015: The Future of Crude Oil, Equities, Bullion and Currencies

Daily Newsletter (8th December 2015)

Global Stock Indices

As expected, US market fell off higher levels. S&P500 FUT made a high of 2096 in the last trading session and then dropped down to 2067 – which is a 1.13% gross downward move. Our research doesn’t indicate S&P500 falling below 2060. As far as astrology is concerned, bullishness is indicated for equities today. This positive trend may last till next day’s US Opening. In this time frame, S&P500 could move up to 2096-2110. And then after US opening next day (9th), correction shall be observed in equities. On 10th December 2015, a sharp correction is indicated. S&P500 could drop down to 2040. On Friday, trend is positive. The low of market is expected to be made in this week. In next week, market shall prove to be especially positive from 16th December as Sun shall enter Sagittarius.  This trend shall continue till X-mas with volatility. On 16th, it is the federal rate interest rate announcement. It is difficult to predict the exact outcomes but analysis says that post FOMC action, market is destined to be bullish.

You can hold the long position you made last evening at lower levels (for S&P500) and accumulate more long position at 2060-2062.

Intraday perspective

From UK opening, market shall gradually turn positive. This shall continue till next day’s US opening.

 

TRADING RANGE:

  • DOW (FUT):17620-17850
  • S&P 500 (FUT): 2062-2095 AND ABOVE
  • NASDAQ (FUT): 4670-4750
  • FTSE (FUT):6190-6310
  • CAC(FUT):4720-4810
  • DAX(FUT):10820-11040
  • AEX(FUT):445-455
  • HENG SENG(FUT):21650-22000

PRECIOUS METALS

Precious metals prove to be right on our expectations. Bullion moved down to the kind of extent that was anticipated. Gold made a high of 1086 and then dropped down to 1067 while Silver made a high of 14.62 and then dropped down to 14.20. For today, bullion shall be in positive trend. Gold shouldn’t break 1060 while Silver shouldn’t break 14.00. Post US opening, bullion shall move up. By Friday, Gold & Silver may re-test 1088-1092 & 14.62.

TRADING RANGE:

  • GOLD: 1061-1078
  • SILVER:14.00-14.40

INDUSTRIAL METALS

Copper shall follow the trend in bullion.

TRADING RANGE:

– COPPER: 2.04-2.08

ENERGY PRODUCTS

CRUDE OIL

Crude Oil underwent a breakdown in the previous trading session. It breached a key level of 38.00 which was a precise technical support. As long as oil is trading below 38, it can drop down to 36 (as per technical analysis). However, astrology has a different view: positive closing is indicated for crude oil.

If positive closing is observed today, trend shall remain upward till 24th December 2015 & by this Friday, it would cross $42/bbl.

NG

NG shall follow the trend in crude oil. If it closes positive today, it shall move up to 2.20 in this week.

TRADING RANGE:

  • CRUDE: 37.30-39.50
  • NG: 2.04-2.12

Risky traders can long crude oil with stop loss of 37 and NG with stop loss of 2.00.

CURRENCY PAIRS

EURO

We had asked you to book profit in SHORT position (since 1.0950 – last week) of EUR/USD last evening. Today, trend may move EUR/USD in a way to retest 1.0780. This shall be seen as a buying opportunity for target 1.0950.

USD/INR

Make short position in USD/INR at higher levels with stop loss 67.

DOLLAR INDEX

Dollar index shall again move up for the day.

TRADING RANGE:

  • EUR/USD: 1.0880-1.0780
  • USD/INR: 66.88-66.60 & BELOW
  • DOLLAR INDEX:98.40-99.00

US TREASURY BONDS

Bonds shall remain negative for the day. You can short treasury bonds around 2.20 for target 2.30.

TRADING RANGE:

  • US 10 YR TREASURY: 2.20-2.29

INDIAN STOCK MARKET

Indian market shall have gap down opening. After 13.00 HRS IST, recovery is indicated. As per astrology, next trading session seems positive. 7700 will prove as a major support for Nifty Fut.

It is advisable to make long position in Nifty Fut with stop loss 7700.

TRADING RANGE:

  • NIFTY FUT: 7720-7820
  • BANK NIFTY: 16800-17100

BUY ON DIPS:

  • ASIAN PAINTS
  • APOLLO TYRES
  • UBL
  • TATA MOTORS
  • MARUTI
  • SBI
  • ICICI BANK

Authors: Rajeev Agarwal & Shashi Prakash Agarwal | Sent @ 12/8/2015 8:12 AM
Disclaimer: The view contained in this report is for educational purpose only. Decision to trade remains with investors and hence, neither MADPL nor any of its associate shall be liable for any losses / profits gained.

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