Asian Metals Market Update for 16th November, 2007
By: Chintan Karnani, Insignia Consultants
-- Posted Friday, 16 November 2007 | Digg This Article | Source: GoldSeek.com
COPPER DECEMBERTECHNICAL LEVELS
SUPPORT
RESISTANCE
S1
S2
S3
S4
R1
R2
R3
R4
$281.00
$289.00
$298.00
$302.80
$316.00
$326.00
$333.00
$337.00
GENERAL MARKET CONDITIONS
I would call this week’s fall in gold and silver a technical correction and nothing else and is the next best thing to have happened for a sustainable long term bull rally. For the first time in many week US crude oil inventory was positive but crude oil still floats over $90. Its all about options. Early this year crude fell to $50 due to the options market, copper also fell due to options markets. Gold failed to break $850 due to options market. Crude oil will trade firm till March due to options markets, unless of course there is warm weather in US and Europe.Options markets are playing a very big role in major price movement.
U.A.E said that they may drop their dollar peg in favor of a currency basket including thee euro to contain inflation.Even though the reserves held by the U.A.E. are relatively small, if the move becomes official, it would be symbolically important because it suggests that other Gulf nations could follow suit. This has been factored in by the markets and will prevent long term traders from gong long on US dollar and short in precious metals.
At lower levels, physical demand for gold and silver should rise which will prevent a major fall. The current fall is a part and parcel of a long term bullish rally, but there could be more as the ten percent correction from $846 in gold is yet to be over.Silver, volatility at its best, it will be volatile and not suitable for the low risk trader. Stop losses are useless in silver as they are bound to be hit.
SILVER -- DECEMBER FUTURE
Silver needs to hold $1390-$1394 on closing basis to prevent a fall to $1354 and $1298 next week. On the higher side it needs to break $1516 for further gains.
COPPER -- DECEMBER
The rise in copper was news driven and fake. It needs to once again hold $298 to prevent a fall to $282 and $272. Resistances at 316 and 326.
NYMEX CRUDE OIL --FUTURE
$91-$96 range will continue and only a break of the same will result in $86 or $102.
HAPPY PROFITABLE TRADING
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-- Posted Friday, 16 November 2007 | Digg This Article | Source: GoldSeek.com
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