Archive for January 11th, 2010

Additional Directional Movement (ADX) Part 1

Hello Friends here we come up with another write up on “Commodity Corner Series”.

Topic is Additional Directional Movement (ADX) Part 1.

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Additional Directional Movement (ADX)

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We would touch upon aspects like what is ADX, what does it mean for Investors and what are the basics of ADX.

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As futures markets are volatile in nature & remain in over bought/-sold condition for a period of time, there is a need to confirm a move with an additional confirmation signal.

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It is important to predict the trend of the commodities futures & the analyzing the strength with applying technical tools.

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Reading directional signals from price alone can be difficult, & it is here where this indicator “Additional Directional Movement” provides an early signal to guide investor in right way.

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This indicator was created in 1978 by J. Welles Wilder, who also created the popular Relative Strength Index.

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THE BASICS

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ADX differentiates between strong and weak trends, allowing trader to enter only the strongest trends.

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The positive & increasing values on the Y-axis of the indicator measures how strongly price moves upward; the negative or decreasing figures measure how strongly price moves downward.

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· When the +ADX is dominant and rising, price direction is up.

· When the -ADX is dominant and decreasing, price direction is down.

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In other words, the -ADX rises when price falls, and falls when price rises.

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🙂

Next Blog we would read about what are the features of ADX and the current scenario of the ADX in the market.

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Stay Tuned for more on this.

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

Marginal Dip in December’s Rubber Production

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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Marginal Dip in December's Rubber Production

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Marginal dip in Dec rubber production:-

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Midway through the peak period, rubber production dipped marginally by 2 per cent to 98,000 tonnes in December against 1.00225 lakh tonnes last year.

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However, with industrial recovery firmly under way, rubber consumption remains robust, growing 17 per cent to 79,500 tonnes.

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Preliminary indications show severe slippage in Malaysia’s rubber production and India is likely to become the world’s third-largest producer of natural rubber after Thailand and Indonesia.

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🙂

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In Other major Commodities Updates we can read that domestic pepper futures market continues to remain highly volatile and Sugar prices expected to remain higher in the coming month.

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Pepper futures continue to remain volatile:-

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The domestic pepper futures market continued to remain highly volatile because of the tug of war between the bulls and the bears.

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The prices were falling without any co-relation to the fundamentals.

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Spot prices fell from Rs 15,000 a quintal to Rs 13,700 in about a month.

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The reasons attributed included arrivals of the new crop, huge outstanding position in the January delivery and easing of other origins and so on.

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Around 1,200 tonnes of pepper would have its validity expired on Feb 5 and that is expected to be tendered for delivery and thus it might also enter the market.

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🙂

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Sugar prices may remain firm in coming months:-

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Sugar prices are expected to remain higher in the coming months as lower acreage and poor rains will keep India’soutput at 15.3 million tonnes,

falling severely short of domestic consumption of about 23 million tonnes in the 2009/10 season.

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🙂

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here