Market view for 6th Aug

Base metals as mentioned are making new highs everyday and killing bears badly. I am sure most of the small investors who have initiated shorts when metals started rising must have booked huge losses by now & some may be about to book. The interesting part in this rally is that open interest is not getting increased which means that new positions are not building up so it can be a fake rally and profit booking can take place anytime. Ideally any rise or fall should be accompanied by an increase in the open interest which is not the case here. Another interesting factor is that in $ Copper is almost reached the level from where the real fall has started in September 2008 so that level will act as a stiff resistance. Again I am not saying that you short here because trend is still up but the chances & probability is that Copper wont cross 301.65 and should fall from here. Also some more metals like Zinc is also at a decent resistance of 91.65 on weekly charts. Lets see what we have in bucket hereafter.

Crude as mentioned has taken a beautiful support at 3327 and bounced back sharply for 3415. It is still up...

Gold & Silver are also up and can be bought on dips.

Natural Gas is looking somewhat positive so we made some money intraday in it by going long at 188.70 for target of 197 intraday. Met 3rd target of 195 and settled down at 2nd target. It is somewhat positive but the real strength will be on a close above 200. Keep an eye...