-- Posted Tuesday, 6 January 2009 | Digg This Article | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
In 2009 all the metals and energies may not move in a straight line/linear northward direction or in a one way southward direction. Trading in 2009 will be like a zig-zag correction with most commodities moving in a direction. Detection of the trend will be the key for the short term trader as well as long term trader.
The key factors to watch out for all commodities in 2009 are:
The US dollar (In my view gold and precious metals will delink from the US dollar movement in 2009).
Fund interest: Fund interest will be there in agro commodities as long term supply pressures will only rise with the rise in global warming and increasing demand. As far as hedge fund interest in precious metals, base metals and energies are concerned the level of investment will be lower than first half of 2008.
Technical factors: Never ignore the technical factors. Specially the day traders and weekly traders.
Look out for exceptional news which have the effect of altering the long term direction.
Market moves on sentiment, never ignore the market sentiment: Sometimes fundamentally as well as technically a commodity should rise whereas it continues to fall mainly because the market sentiment is negative.
These are just a few points to be kept in mind while trading in 2009.
NYMEX CRUDE OIL (1ST CONTRACT)
If the war (Israel and hamas) continues then crude oil can rise to $58 while maintaining the medium term bearish trend.
DISCLOSURE: NO POSITIONS
Disclaimer:Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities 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.Nothing in this article is, or should be construed as, investment advice. Prepared By Chintan Karnani. Website www.insigniaconsultants.in
-- Posted Tuesday, 6 January 2009 | Digg This Article | Source: GoldSeek.com
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