Rubber Rallies for First Time in Five Days on Crude Oil Gain, Yen Decline
- Rubber climbed for the first time in five days, trimming this week’s loss, as crude oil rallied and the yen dropped, boosting the appeal of the commodity used to make tires.
- January-delivery rubber in Tokyo gained as much as 2.1 percent to 281.9 yen a kilogram ($3,277 a metric ton) on the Tokyo Commodity Exchange and traded at 278.6 yen at 11:59 a.m. local time. The contract has lost 1.3 percent this week, the first weekly drop in four.
- “It’s a technical rebound backed by a weaker yen and a rally in oil prices,” Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said today by phone. “Lower stockpiles have also lent support to the market.”
- Natural rubber prices are likely to remain near current levels at $3 a kilogram for the next two months because of tight supply and increasing demand, according to the International Rubber Consortium
Rubber Todays’s Strategy*
1) Go short from 17370 for a target of 17245 with a Stop Loss at 17435
2) Go long from 17210 for a target of 17310 with a Stop Loss at 17150
3) Go short from17460 for a target of 17360 with a Stop Loss at 17520
4) Go short below 17130 for a target of 17030 with stop loss at 17210
