-- Posted Thursday, 30 July 2009 | Digg This Article | | Source: GoldSeek.com

Base metals have remained partially resilient to the fall in precious metal prices and energies prices. The Federal Reserve said most of its 12 regional banks detected a slower pace of economic decline in June and July, further signs the worst U.S. downturn is closer to an end. Japanese manufacturers increased production for a fourth month in June, capping the fastest quarterly output expansion in more than half a century and helping the economy rebound from its deepest postwar recession.  This is positive news for the base metals and suggests that demand will be high in future. However these are all discounted and are reflected in current prices.

The big question for commodities is whether the last two days fall in commodity prices is month end profit taking or a start of a short term bear rally? We need to wait till Friday for more clues and if commodity prices continue to fall till Friday then it will spill over into whole of August.  On the contrary if they recover then it would be called just a correction in a medium term bull run. I will prefer to remain on the sidelines.

TECHNICAL VIEW

NYMEX CRUDE OIL (1^ST CONTRACT)

$63.20 price target achieved. $59-$61 zone will be difficult to break till tomorrow and as long as this zone holds crude oil will target $65.80 and $67.40 once again.

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 Thursday, 30 July 2009 | Digg This Article | Source: GoldSeek.com

1080-81, Ugger Sen Street,”Somani Bhawan”
Sita Ram Bazar, New Delhi-110006. India.
Ph: [O] 91-11-30919880 [M] 09811139549
Website: www.insigniaindia.com
Email: chintan@insigniaindia.com

Previous Articles by Chintan Karnani, Insignia Consultants

© 1995 - 2019

Live GoldSeek Visitor Map | Disclaimer