-- Posted Monday, 28 January 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 28th January, 2008
GOLD	SILVER
COMEX GOLD FEBRUARY FUTURE -- $916.90	COMEX SILVER -- MARCH FUTURE -- $1657.0
EXPECTED TRADING RANGE
GOLD FEBRUARY 08   -- $903.0 -- $938.00	SILVER  MARCH 08  -- $1600.0 - $1712.00
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MARCH 08   -- $307.00 - $326.00	NYMEX CRUDE OIL   - $86.00 - $91.00
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GENERAL MARKET CONDITIONS
Last week some of my clients were telling me that they were scared to trade in silver as it is very volatile. MCX silver March futures moved up and down Rs.100-Rs.125 anytime. Silver over the past eighteen months has the tendency to create a new high/low and then consolidate in a range for a few days before the next direction. Risk factor comes in only when silver breaks out that day and your trade is against the break out. Otherwise one just has to spot the range and wait patiently for the price levels to come and trade. But again the key to trade in silver is to reduce greed levels and book partial profits on your trades and increase the stop loss for the rest if you do not want to reduce your greed.
Gold is a day traders paradise and is offering better returns that silver. Volatility is greater than silver and day traders love volatility. The only caution which one needs to keep in mind for gold is not to trade against the trend. If you trade against the trend, all your stop losses will be hit. Gold has a great start to 2008. Long term investors should remain invested. Short term investors wait for a correction and then invest as the incremental gains will not be that much as compared to investment at $800 or $850.
Apart from the fed meeting, we have the January payrolls and gold February future expiry. The Fed is expected to cut interest rates by at least a quarter of a percentage. There are more longs in February gold than shorts in my view. Shorts have been converted into longs.  Spreads will not be volatile. If January payrolls come in higher then the 0.75% interest rate cut will only mean that the cut was done in haste. Overall another volatile week in the offing for all the metals.
Alternate Strategy:  Sell at $928 and $945 stop loss $4 each.
SILVER -- MARCH FUTURE -- INTRA DAY PIVOT $1676
Silver targets $1670, $1712 as long as $1623 and $1600 holds.
COPPER -- MARCH FUTURE -- INTRA DAY PIVOT: $327.0
Failure of copper to break 339 by next week will result in a fall to $292 and $276.
HAPPY PROFITABLE TRADING
Disclaimer : Any opinions as to the commentary, market information, and future direction of
prices of specific currencies, precious metals, base metals, or equity indices reflect the views
of the individual analyst, In no event shall Insignia Consultants or its employees  have any liability
for any losses incurred in connection with any decision made, action or inaction taken by any
party  in reliance upon the information provided in this material; or in any delays, inaccuracies,
errors in, or omissions of Information.

-- Posted Monday, 28 January 2008 | Digg This Article | Source: GoldSeek.com

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Email: chintan@insigniaindia.com

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