-- Posted Tuesday, 4 September 2007 | Digg This Article

SILVER DECEMBER TECHNICAL LEVELS
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
$1,146.00	$1,174.00	$1,198.00	$1,209.00	$1,254.00	$1,274.00	$1,305.00	$1,330.00
GENERAL MARKET CONDITIONS
It’s all abut interest rates and economic growth for the next fortnight. Markets will be looking forward to every economic number and see whether economic growth could lead to an interest rate hike or a cut by the developed nations. For the first time in two years there is an interest rate uncertainty ahead of the major central bank meetings. This will only increase volatility. We do not expect any of the central banks to raise interest rates. The Fed may cut interest rates. The worst of the CDO’s and LBO ‘s are over and things should slowly and steadily settle down. There will be short burst of volatility which will be lower than August. These are just aftermaths of every storm.
Investors risk appetite has topped out. Cost of funding will increase over a period of time. Higher cost of funding will have a medium term effect on corporate profitability. Fed and other central banks pumping in billions of dollars every day into the money markets will act as short term stabilizer. Gold will benefit as a result on the same. However unless spot gold break and holds $700 for a few days, there will be few buyers as it nears $700.
Silver continues to disappoint. Spot silver needs to break and hold $13.35 to be bullish zone till then it will trade in $wider 11.00-$13.35 with a slight possibility of testing $9.60 if there is another liquidity squeeze and stocks tumble.
Base metals are expected to continue their August volatility in September. Demand should pick up ahead of Asian festivals, thanksgiving and Christmas. Energies should remain firm. Natural gas down but not yet out. Risk to return ratio in natural gas is in favour of the buyer.
MCX -- ZINC SEPTEMBER FUTURE (PRICES IN INDIAN RUPEE'S)
SUPPORT				RESISTANCE
S1	S2	S3	S4	R1	R2	R3	R4
117.80	120.30	122.30	124.80	127.60	129.60	132.10	135.40
MCX -- ZINC SEPTEMBER FUTURE (PRICES IN INDIAN RUPEE'S)
Still in a bear zone and needs break and hold 130 for gains. Jobbers can use a sell on rise stratgey till 130 is not breached or buy around 122.30
SILVER -- DECEMBER FUTURE
Silver needs to break $1234 for $1254 and $1274. Support at $1209 and $1178. Intra day price target $1254.
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prices of specific currencies, precious metals, base metals, or equity indices reflect the views
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errors in, or omissions of Information.

-- Posted Tuesday, 4 September 2007 | Digg This Article

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