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Crude Oil Trading Strategy

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Contract Release & Expiry

Dear Trader,

Following contract/s shall be released / expired on Monday, 25th April 2011, please take note of it.

New Contracts:

None

Expiry:

1- COTMAY11

NB: New contracts will be available for trading from the Market Open and

Expiry at 15:00 NST

Thanking You,

iNews Team

Farwest Futures Pvt. Ltd.

Gold Sell Signal (Intra Day)

Chart Hourly

Entry: $1503 (36280 Mex)

SL: $1510

Target: $ 1495 - $ 1488

Research & Development Desk

Farwest Futures Pvt. Ltd.

Today’s Trading Tips

April 21, 2011

Commodity	Trend	Strategy
Gold	Upwards	Buy around $ 1494 SL below $1489 Target: $ 1510 - $ 1518
Silver	Upwards	Buy around $ 45.45 SL below $ 45 Target: $46.10-$46.50
Copper	Upwards	Buy around $ 426 SL below $ 419 Target: $438-$ 442
Crude Oil	Upwards	Buy around $ 111.70 SL: below $ 110.90 Target: $113-$113.60

 

Research & Development Desk

Farwest Futures Pvt. Ltd.

www.fwfutures.com

Gold Breaks $ 1500

Gold broke above 1500 (new high: 1500.5) briefly before settling at 1495.1. Debt concerns continued to drive demand for the metal although Geithner assured there's no risk to US's AAA rating.

Coffee May Expiry Notice

Dear Trader

Please be notified that Coffee May 2011 COFMAY11 shall be expired on Wednesday, April 20 2011 at 3:00 PM NST.

Thanking You.

iResponse Department

Farwest Futures

Buy Copper May

Buy Copper May 11 (Intraday), | Buy Confirmation by Hourly Chart | Indicators: ADX, Parabolic SAR, Zig Zag & Heiken Ashi

Stop Loss at: $418.30

Breaking! Gold is nearby $1500

Dhangadhi (Farwest Futures): Gold June 2011 is nearby $ 1500.

Gold advances, oil posts losses

SAN FRANCISCO (MarketWatch) -- Gold added to its advance and oil retreated further after ratings agency Standard & Poor's had revised the outlook for U.S. debt to negative on Monday. Gold for June delivery /quotes/comstock/21e!f:gc\m11 GCM11 +0.26% most recently added $3.60, or 0.3%, to trade at $1,490.20 an ounce on the Comex division of the New York Mercantile Exchange. It earlier had traded around $1,497 an ounce after the news. Oil traced the opposite arc, and crude for May delivery /quotes/comstock/21n!f:cl\k11 CLK11 -1.60% most recently traded $1.84 lower at $107.80 a barrel on the Nymex. It had traded as low as $107.60 a barrel.

Oil futures fall

SYDNEY (MarketWatch) — Crude-oil futures dipped in Asian trading on Monday, despite the world's largest oil exporter, Saudi Arabia, saying it had cut output on the belief the market is oversupplied.

Benchmark light, sweet crude for May delivery CLK11 -0.55%   slipped 73 cents or 0.7%, to $108.82 early Monday in electronic trading on the New York Mercantile Exchange.

On Sunday, Saudi Arabia's oil minister reportedly said the nation cut its oil output by around 800,000 barrels a day in March, due to oversupply.

Saudi Oil Minister Ali al-Naimi said that April production was expected to rise slightly from March levels, according to the reports.

Last month, Saudi Arabia's output reached 8.292 million barrels a day, down from 9.125 million in February, the reports said. Some major oil-consuming nations had hoped Saudi output could help push currently high oil prices lower.

Big oil technology aims to stop spills

A new device called a 'capping stack,' unveiled by a consortium of oil companies led by Exxon, aims to allow emergency responders to plug deepwater oil spills similar to the one in the Gulf of Mexico last year.

The comments came as geopolitical tensions and violent attacks continued across the Middle East and North Africa over the weekend, stoking uncertainty in oil markets and supporting prices over recent months. Read more about Mideast and North African unrest.

"The market remains far from any equilibrium, supply losses have not been made good, geopolitical risk remains elevated, spare capacity is still falling, and the very limited movement along the demand curve in response to higher prices has thus far been an order of magnitude less than the supply-side outages," analysts at Barclays Capital said in a research note.

However, concerns eased about violence in presidential elections in Nigeria, a major oil exporter, with CNN reporting the vote was "largely peaceful."

Media reports following the Saturday election said incumbent Goodluck Jonathan was likely to win reelection, with official results possible as early as Monday.  See report on concerns surrounding Nigerian election.

Sell Crude Oil May

Crude May 11, is showing sell signal on hourly chart.

Used Indicators: Parabolic SAR, Zig Zag, ADX, Heiken Ashi

Stop Loss Area: $110.06

China data signal further room to tighten policy

HONG KONG (MarketWatch) — China's consumer inflation accelerated in March to its fastest rate in almost three years, slightly ahead of expectations, while other data showed the pace of economic growth little changed, signalling China has scope for further policy tightening to help curb price gains.

The consumer price index rose 5.4% in March from a year earlier, up from February's 4.9% rise, compared to expectations of 5.3% and 5.2% in surveys by Dow Jones Newswires and Reuters, respectively. "Whispered" numbers reported by local news media had indicated CPI increase of between 5.3% and 5.4%.

The CPI rise was the fastest since July 2008.

Wholesale prices were up 7.4% for the month from a year earlier, matching analyst forecasts compiled by Dow Jones,and just ahead of a 7.2% projection from the Reuters survey.

More of a worry for Chinese policy makers, food prices were up 11.7% in March from a year earlier, while non-food prices were up a more modest 2.7%. The CPI figures and component data were released by the Bureau of Statistics.

Can China bust inflation without stifling growth?

Amid growing worries over inflation in China, many question what the People's Bank of China can do to put on the brakes without dampening rapid economic growth.

China's gross domestic product in the first quarter expanded 9.7%, easing slightly from 9.8% in the prior quarter, but ahead of expectations of 9.5% growth in both the Dow Jones and Reuters surveys.

Signs that economic growth was holding up — in spite of four interest-rate hikes by the People's Bank of China since policy eased due to the global financial crisis — would likely give authorities confidence to further tighten policy.

"Our overall assessment is that economic growth is stable and robust, but inflation pressure is elevated (though definitely not out of control)," said Bank of America-Merrill Lynch economists in Hong Kong, in a note released following Friday's data.

They added that China's CPI looks set to peak at between 5.5% and 6% in June.

Other analysts were less upbeat, warning bolder action was need to bring inflation under control.

The People's Bank of China is "behind the curve with its gradualist approach and ... needs to get more aggressive," wrote Brown Brothers Harriman's New York-based analysts after the data release.

The analysts said China is still in the early innings in its rate-hiking cycle, having nudged the main interest rate up by one percentage point and banks' reserve requirement ratio by 4.5 percentage points, compared to tightening of 1.89 points and 10 points, respectively, during the previous cycle.

However, if it had been solely up to the People's Bank of China, it's likely an anti-inflation policy would have been rolled out sooner and been more aggressive, The Wall Street Journal reported on Friday, citing unnamed sources.

Interest-rate policy in China is subject to influence of competing bureaucracies, secret committees and the Communist Party, which maintains a pervasive but hidden influence, the report said. See WSJ.com report on Chinese policy making.

In other data, retail sales for March also beat expectations, rising 17.4% from the year-ago period, while urban fixed-asset investment for the January-to-March period increased 25%, accelerating from a 24.7% expansion in the prior quarter.

Hong Kong and Shanghai stocks traded in positive territory after the data was released but later fell back, sending both indexes into negative territory in the afternoon. The Hang Seng Index (HK:HANGSENG 24,008.07, -5.93, -0.02%)   fell 0.4% to 23,929.3, and the Shanghai Composite Index (CN:SHCOMP 3,050.53, +7.89, +0.26%)  eased 0.5% to 3,026.4.

Generally, however, the market reaction was subdued, as the key consumer inflation reading matched the 5.3%-5.4% "whispered numbers" reportedly leaked to Chinese media a day before the release, Roland Randall, T.D. Securities' senior forex strategist in Singapore, wrote in a note Friday.

The T.D. Securities analysts said the correct prediction contained in this and other whispered numbers reported on Thursday would add gravitas to the unofficial releases in the future. See MarketWatch report on whispered numbers for Chinese data results.

However, China's Bureau of Statistics said Friday that it would punish those responsible for leaking the data to the press, along with a leak of central bank data released Thursday, according to a Bloomberg News report

Source: MarketWatch.com

Bearish Divergence on Gold

Gold June is forming Bearish divergence on Daily chart. http://www.fwfutures.com

Today’s Strategy for Gold, Silver & Copper

Gold(Jun): Trend Bullish, Buy on dips

Silver(May): Trend Bullish, Buy on dips

Copper(Apr): Trend Consolidate, Buy on dips

Chinese Banks Need $131 BLN

HONG KONG (MarketWatch) -- Chinese banks may have to raise 860 billion yuan ($131 billion) via the sale of shares through 2016 to meet stricter capital rules, according to a report by Bloomberg News, which cited a person with knowledge of estimates from China's financial industry regulator. Chinese lenders will also likely need to raise an additional 1.26 trillion yuan in supplementary capital over the six years, the report cited the unidentified source as saying. The report said its source declined to be named because the calculations have not been made public. The estimates of the capital needed were reportedly compiled in January.

Soure: Marketwatch.com

Revised Margin

Dear Trader,

Following is the revised margin of products:

Gold-major    :NPR 78,000

Crude Oil     :NPR 76,000

Copper     :NPR 37, 000

Mini Copper    :NPR 19,000

 

New Margins shall be applicable from Wednesday, 13th April 2011 for both New and existing positions.

All traders are requested to comply with new margin

 

Thanking you,

Client Service Department

Crude oil climbs above $111 a barrel

SYDNEY (MarketWatch) -- Oil futures climbed over $111 a barrel in Nymex electronic trading, recently trading up 76 cents at $111.06 a barrel in Asian hours midday Friday. It closed at a 30-month high in regular trading in New York on Thursday. "We think markets are somewhat confused as to what is going on with Saudi production and whether, in fact, it is being ramped up to the full extent possible in order to offset the Libyan production shortfall," said energy analysts at MF Global. "Until more data comes in, we suspect the markets will be relatively well-bid for at least several more weeks to come," they said.

Source: marketwatch.com

Congratulations to First Client

We congratulate our client 3001001, Mrs Usha Shah for being the first lucky trader with Farwest Futures Pvt. Ltd. We wish you good trading ahead.

Farwest Futures Family

Gold Ahead

Gold has breached up $1450 zone. Now close eyes are on gold. As per 1 hour Barchart & Technical Indicators, gold will kiss $1460-1470 in the days to come.

Benefits of Futures Trading

Though, futures trading of commodities are considered as a measure of hedging the price volatility of underlying commodity, there are many other advantages that a client can get from it. They are:

• Highly leveraged investment, as an investor has to put up a small fraction of the value of the contract as 'Margin'.
  
• Availability of round the clock electronic trading services.
  
• Simple and reasonably low transaction fee.
  
• Huge amounts of contracts can be traded every day as futures markets are very liquid.\ Availability of both standard and mini contracts helps traders to choose.
  
• Paper work required only at the time of registration.
  
• No need for holding/storing the underlying commodity or equity.
  
• Instant execution of orders.

Bank Operations Timing

As there is a public holiday on 3^rd April, 2011, please find the contact details and branch operation timings for both the banks.

   
 

Laxmi Bank, Hattisar Branch
11:00 A.M to 2:00 P.M.
   

Contact Person: Anil Shrestha

Contact no: 4444684/4444685                     Ext 106 and 108

 
 

Laxmi Bank, Pulchowk Branch
10:00 A.M to 1:00P.M.
 

Contact Person: Prativa Shrestha

Contact no: 5553545/ 5552391/5553972/5553973 Ext 109

 
 

Bank of Kathmandu (BOK), Kamal Pokhari Branch: 1:00 P.M. - 3:00 P.M.

Contact  Person: Mr. Samendra K.C/ Mr. Bimal Shrestha

Contact number: 4414541                                        Ext 176

 

Revised Trading Schedule

Please be notified that the new schedule shall be applicable for following products, from 28^th March 2011

Products	Trading Hours
Cocoa	13:45-23:45
Coffee	13:15-23:45
Sugar	13:15-23:45

 

For any further clearification, you may contact info@fwfutures.com

Customer Services

Farwest Futures Pvt. Ltd.

www.fwfutures.com

Official Training

We have successfully completed the 3 days training organized by Mercantile Exchange Limited Nepal Mex as well as Nepal Spot Exchange Limited. The training was held on respective exchange's office from 23rd March 2011 to 25th March 2011.