-- Posted Wednesday, 3 March 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
All the commodities have risen in tandem after the Chile earthquake. Chile is one of the major metal suppliers to the world and any disruption in an already low supply market will result in higher storage demand from industrial users and well as higher investment demand. There is no reason for gold to rise but it has risen on the back of an overall commodity bull wave and a technical breakout.
Global inventory levels of base metals are quite low and the Chile news has come as a shot in the arm for miners as well as investors. The big question is how long will this last and/or is March’s rise another medium term bull rally in commodities. In my view the rise in commodities in the first two days of March is a part of an overall bull run in commodities but the same will be confirmed after the US February non farm payrolls on Friday. A higher close on Friday can result in another ten percent gains in all commodities before the Easter vacation around the first week of April.
The best way to trade is to ignore all news and simply trade in the technical.
TECHNICAL VIEW
COMEX GOLD APRIL
Bullish over $1127 with $1143 and $1157 as price target
Bearish below $1119 with $1111 and $1104 as price target
Neutral Zone between $1119 and $1127
Support: $1127 and $1110.40
Resistance: $1137.40 and $1156.30
MCX GOLD APRIL
Bullish over 16880 with 17084 and 17267 as price target
Bearish below 16810 with 16740 and 16650 as price target
Neutral zone: 16810-16880
Support: 16901-16760
Resistance: 17084 and 17267
THIIS IS JUST AN EXCERPT OF THE MAIN REPORT FOR SUBSCRIPTION CALL 9311139549
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
For further clarifications on this report call 91-9312335649 (Mr.Chintan Karnani)
Yahoo chat: chintan342@yahoo.co.in
You can also mail your queries at chintan@insigniaindia.com
-- Posted Wednesday, 3 March 2010 | Digg This Article | Source: GoldSeek.com
