Morning Comment for Monday, January 6th

 The short term technical action is positive for London and the US market this morning. While a mild recovery in the Brazilian Real, positive sentiment in the external markets, and a strong rebound in London provided support, there was also notable short covering in front of this week's commodity rebalancing and traders also sensed that the market was oversold. The declining open interest and the hefty supply outlook are factors which clash with the  short term technical action. The intermediate trend could be turning higher with the key resistance at the previous high of 118.45 area, while support lie below at 113.50 area.