THE TIPSTER
GOLD has continued to rally strongly. With increased uncertainty ahead of companies’ October quarterly figures and the current weakness in the US dollar, we could still see further upside in the precious metal. If it dips down to $1,305, it might well be worth picking up some long positions with a view to closing the trade some time before 12 October WorldSpreads offers a $1,308-$1,308.5 spread.
Wheat has also been a strong performing soft commodity over the past month but as demand ebbs, its price is beginning to gather momentum to the downside. After spiking to $868 in August, wheat is moving into the bearish phase of its cycle. Having broken support at $675, further downside is likely. ETX Capital is quoting $667.75-$669.00 for the December contract.
Stricken oil giant BP saw a good move to the upside yesterday ahead of the new American chief executive taking the reins from Tony Hayward. Investors are hopeful of further gains for the stock price as it seeks to repair its reputation in the months to come. Capital CFDs quotes a price of 417.4p-418p.
Dairy Crest shares yesterday leapt some 7 per cent higher to 370p on news it had won the Morrison’s supply deal from rival Robert Wiseman until 2015. It updates the market today with its half-year results and some spread betters were taking advantage of the rise to the 150-day exponential moving average to sell. Some were closing out long positions and some were even going short – the shares have been in a downtrend since June and the 370-380p area represents the top of the range and moving average resistance. Spread Co offers 370.8p-372.4p.
Rolls Royce shares jumped 3.3 per cent yesterday on the back of a Morgan Stanley upgrade to overweight. The stock once again ran into strong resistance at 612p, but if it can break through, the signs are favourable for it to retake the long-term uptrend to around the 650p area. Look for dips back to 580p for opportunities to buy. Spread Co offers a spread on Rolls Royce of 610.1p-612.9p.