After the huge run up seen in crude prices last week - up nearly 5.5%, there seems to be a bit of a consolidation happening today. While US dollar is still on the weaker side and Iran concerns are still boiling, positive data from US has been supportive for the crude prices. But, couple of factors have led to some profit off these commodities: 1) Saudi Arabia says that it would increase exports to fill in the gap that has come in from Iran. 2) US has said that, it would tap the strategic reserves to increase supplies for the US markets. So, above factors have led to a bit of a profit taking onto the crude prices. But most of the chartists still say that Brent crude prices could be headed towards 126 to 130 on the higher side in the very near term. Base metal pack is also witnessing some profit taking as well. While the US data has been positive, not much demand is coming in from the Chinese market, which is putting pressure on the prices. Also, markets are watching out for further easing of liquidity coming in from China market. For the day today though, it is the US new home sales in the evening that markets would be taking cues from.

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