-- Posted Monday, 19 January 2009 | Digg This Article
| Source: GoldSeek.com
WEEKLY TECHNICAL REPORT FOR WEEK BEGINNING 19TH JANUARY, 2009.
A SHORT NOTE ON THE MARKETS
If one looks at the technical charts most of the commodities are in a neutral zone. The relative strength index (RSI) is in a neutral zone while momentum oscillators are in a negative zone which suggests that gains in metals and energies will be capped unless there is a technical breakout.
Last week liquidity factors along with technical factors were the key market movers. A fall in global equity markets resulted in commodities falling due to margin pressure on equity markets which in turn triggered a technical sell off and vice-versa.
This week there is lack of major market moving economic news from the USA. Barack Obama takes over as the new ruler of the USA. The good thing which I like about him is that he does not have a military background and hopefully we will see a more peaceful and stable world under Mr. Obama than under Bush. Do not expect magic wand type of stuff from Obama. The results of the measures to stimulate US economic growth and Middle East peace which Obama is expected to take with urgency will take time.
SPOT SILVER
SPOT SILVER TECHNICAL LEVELS |
SUPPORT | RESISTANCE |
S1 | S2 | S3 | S4 | R1 | R2 | R3 | R4 |
$9.75 | $10.10 | $10.34 | $10.75 | $11.04 | $11.62 | $12.27 | $13.02 |
· Neutral zone.
· Silver needs to break $12.20 for more gains. As long as silver does not break $12.27 it will trade in wider $1020-$1220 range.
· Pivot point OR key level to watch out: 10.80 and $12.20.
· Trading strategy: Short term trader: Sell at higher prices till $12.20 is not broken OR wait for a correction and buy around $10.62 and $10.20 using stop losses.
· Investor: Wait for a correction and buy near to $10.30 and $9.80.
This is just an excerpt of the main report for subscription call 011-23210678 or 9311139549
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 Monday, 19 January 2009 | Digg This Article | Source: GoldSeek.com
