-- Posted Friday, 7 March 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS
Asian Metals Market Update for 7th March, 2008
COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE
COPPER MAY 08   -- $384.00 - $407.00	NYMEX CRUDE OIL   - $102.50.00 - $108.50
GENERAL MARKET CONDITIONS
Silver this week silver has been very volatile and it has tested the nerves of the day trader. Investors in silver need not worry. Fundamental bullishness and undervaluation will prevent silver from a major fall in the long run. The current volatility in silver will continue in the short term as most of the traders have experienced silver’s fall but they have seen such a huge rise. Therefore day traders are confused at higher levels. When they buy, silver prices fall and stop losses get hit. When they sell, silver rises and once again stop losses get hit. The best way to deal with it is to increase the stop loss and wait for the technical levels and if prices are near them, trade. Momentum trading may or may not work in silver.
Base metals took a knock down on margin pressures as hedge funds and private equity groups dealt with margin calls and mortgage lenders struggled with their financing. Prices fell in markets for mortgage backed securities and other asset backed debt. Credit default swap protection costs jumped for corporate debt, and swap spreads widened to record levels. The Carlyle Group has not been able to meet some margin calls and has received a notice of default. US stock markets fell over two percent as a result of the same. Funds reduced their longs in commodities and to meet margin calls in equity and debt markets. Unless there is a stability factor in US housing markets and US equity markets, volatility in metals markets will be exceptionally high and the Bull Run will continue.
It’s just a consolidation phase in gold and silver before the next move. Apart from the Fed most of key central bank meetings are over. Markets will be looking forward to the over hyped US February payroll numbers for direction.
SILVER -- MAY  FUTURE -- INTRA DAY PIVOT $2120.0
Silver has to hold $1920 else it will fall to1860. On the higher side resistance at $2130 and $2196.0
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 Friday, 7 March 2008 | Digg This Article | Source: GoldSeek.com

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