Geojit Comm bearish on crude, gold

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » Nifty BSE | NSE 13/02/12 Are Mutual Funds betting on Nifty?

Alex Mathew of Geojit Commodities would go short on crude. He told CNBC-TV18 that the weakness in crude is also affecting gold. He added that the dollar looks stronger than the euro. According to him, technical indicators have given a sell signal in gold futures.

 

Excerpts from CNBC-TV18's exclusive interview with Alex Mathew:

 

Q: What is your call on crude at this juncture-long or short?

 

A: Short. The exponential moving average of international crude is USD 119.6 per barrel. That means if there is a fall, crude can fall easily towards USD 119.6 per barrel, especially if it falls below USD 123.3 per barrel. So, normally it may touch USD 119.6 per barrel and resistance is at USD 124.14-124.90 per barrel. So, one can sell MCX June contract at around Rs 5,190 with a stoploss above Rs 5,222. Our short-term target is Rs 5,065 or even below.

 

Q: Gold in the recent days has been hanging on only because of crude. With this kind of profit taking coming in that commodity, where do you see gold headed in the near-term?

 

A: The weakness in crude is also affecting gold. The dollar looks slightly stronger when compared with euro. Technical indicators have given a sell signal in gold futures.

 

Gold has minor support at USD 873 per ounce. If it falls below that, then gold can fall easily towards USD 865 per ounce or even to USD 863 per ounce. That is the short-term support.

 

Resistance has seen at USD 880 per ounce and USD 882.59 per ounce. MCX June contract can be sold at Rs 11,930 per 10gram and the stoploss can be above Rs 11,950 per 10 gram and the short-term target is Rs 11,603 per 10 gram.