MC: See crude downside at USD 58-64/bbl: PJ Commodity Ventures
Shreekant Jha, Managing Director, PJ Commodity Ventures, said crude is searching for a bottom which it is not finding. “We are looking at a target of USD 64 per barrel and USD 58 per barrel as downside. We are looking at a resistance at USD 77 per barrel and another one at USD 86 per barrel.”
Here is a verbatim transcript of the exclusive interview with Shreekant Jha on CNBC-TV18. Also see the accompanying video.
Q: Let’s start with crude because we have seen levels below USD 70 per barrel. You think the OPEC meeting is still having support in its prices or are the markets looking at a decline in demand?
A: The market is looking at all aspects and crude is searching for a bottom which it is not finding. We are looking at a target of USD 64 per barrel and USD 58 per barrel as downside. We are short and will be selling it on rallies. We are looking at a resistance at USD 77 per barrel and another one at USD 86 per barrel.
Q: What would you do with gold at USD 755 per ounce?
A: It is looking bearish. We are looking at a support at around USD 730 per ounce with a resistance of about USD 825 per ounce or USD 850 per ounce. We would also be selling this on rallies and look at USD 730 per ounce as a place to cover up short positions.
Q: Major declines have come in the case of base metal prices like copper, aluminum, nickel etc which are trading at 2-3 year lows. Many feel that you can see more declines from here on copper prices as well. What are your levels there?
A: It is trading at around Rs 220 per kg. We are looking at levels of about Rs 205 per kg or Rs 200 per kg with resistance at Rs 238-260 per kg. The cost has come down a lot in the last three weeks. To put it in the right perspective, I would say that it was at Rs 325 per kg and now it is trading at around Rs 220 per kg. This means that on margin money of Rs 25,000, a person would be actually benefited by Rs 100,000 and he would still get his margin back.
Q: Any other metals that you are looking at because we have seen a similar kind of drop happening across the board in all of those metals?
A: Everything is down. In fact, nickel has also crashed a lot. None of them are coming to a correction.
