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-- Posted Monday, 27 August 2007 | Digg This Article

SILVER DECEMBER TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$1,119.00	$1,136.00	$1,155.00	$1,186.00	$1,222.00	$1,251.00	$1,281.00	$1,292.00
GENERAL MARKET CONDITIONS
The Summer Trading is coming to an end. Volatility was very high in currency and equity markets. Commodities, volatility was per high, but manageable. Commodities showed that they are being accepted as a separate asset class. How? Commodities fell in line with equities after global credit crunch and recovered after Fed and other central banks pumped in billions. Commodity bulls must be loving it after the recognition as a separate class.
The credit crunch will have a long lasting effect in the mindset investors as well as on global growth. Central banks pumping in easy money and following a zero interest rate policy is no solution to credit excesses. The effect will be found in the economic numbers over the coming months. I may be buying equities in the short term but cautious in the long term and rather stay from financials. Better to buy some stocks in food processing industry and mining stocks than financials. East money is no solution to maintain global growth. The bust will be swifter than the rise. Central are just prolonging the delay but cannot prevent the bust. Central banks are trying to ensure that a period low volatility and certainty exist in currency markets so that carry trades flourish. That's history now. We are entering a period of high volatility.
Where is the middle east risk. Suddenly it has vanished. Western power were too pre occupied with the credit related risk and the fallout in the form of economic slowdown. Idle mind, devil's workshop. That's all I can comment.
London markets are closed today, next Monday US is closed due to Labour Day. Volumes will fall and expect greater volatility. The Fed is expected to cut interest rates in September while markets have started factoring that the European central banks and bank of England may not raise interest rates in 2007. Unless there is interest rate certainty, expect greater volatility till the third week of September.
MCX -- ZINC SEPTEMBER FUTURE (PRICES IN INDIAN RUPEE'S)
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
119.00	121.20	124.00	127.20	130.60	132.40	136.60	138.80
MCX -- ZINC AUGUST FUTURE (PRICES IN INDIAN RUPEE'S)
As long as 124 holds, it can target 136.30 and 143.05 over the coming weeks.
SILVER -- DECEMBER FUTURE
Silver targets $1251 and $1281 this week as long as $1176 holds. Consolidated fall below $1176 will result in $1155 and $1136.
NYMEX CRUDE OIL --  FUTURE
100 day MA of $67.16 is the key support. Resistance at $73.7.
Happy Profitable Trading
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-- Posted Monday, 27 August 2007 | Digg This Article

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