-- Posted Tuesday, 31 March 2009 | Digg This Article
| Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
It’s a difficult market to trade for the day traders. Most of the day gold/silver trades in a steady range and thereafter a big move up or down in a span of new minutes and once again a consolidation phase for a few hours before the next move. If a day trader gets caught on the wrong trade, his stop losses are hit. If the stop loss is hit continuously then losses keep on piling and he stops trading. Despite all this the current movement in gold and silver is out and out a technical trade. Prices have been following the technical charts.
Yesterday gold and silver initially rose after US equities fell after the open. However inability to rise thereafter resulted in a technical sell off. Liquidity factors coming into play. Obama’s administration decision not to bailout the US auto sector is in my view the first tough and right decision this new US president has made. Bailing out would imply easing going for these companies. Now they need to work hard to make progress. This could mean short term pains for the US economy and US auto stocks, but it will be long term gains for the US auto sector and US consumer.
Technically gold and silver are in a neutral to bearish zone and they have to break key resistances to edge higher. There will be a clash between medium term bulls and short term bears in gold and silver this week. Base metals and energies are in a bullish zone. However there can be a technical correction in them before the next leg higher.
INTRA DAY TRADING STRATEGY.
TECHNICAL VIEW
NYMEX CRUDE OIL (1ST CONTRACT)
100 day moving average of $45.41 is the key support. Crude oil needs to hold $45.51 for the rest of the week to be in bullish zone.
DISCLOSURE: NO POSITIONS
This is just an excerpt of our daily comex report
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, 31 March 2009 | Digg This Article | Source: GoldSeek.com
