-- Posted Wednesday, 28 April 2010 | Digg This Article
| | Source: GoldSeek.com
SAFE HAVENS DEMAND LIFTS GOLD AFTER GREECE CRISIS ESCALATES FURTHER IN NO MANS ZONE.
S&P downgrades Portugal citing debt worries. Standard & Poor's on Tuesday downgraded Portugal's ratings citing concerns about its ability to deal with high debt levels given its weak economic outlook. After Greece now it’s the turn of Portugal. Europe’s worsening debt crisis is intensifying pressure on policy makers to widen a bailout package beyond Greece after a cut in the nation’s rating to junk drove up borrowing costs from Italy to Portugal and Ireland.
The European sovereign debt crisis could lead investors to believe that any country having very high debt could default which could result in investors withdrawing their investments from that nation. Unless Greece is bailed out in totality at the earliest gold will continue to rise and stock markets and other commodities will be highly volatile.
Trading Strategy
Markets will be looking forward to the outcome of the Federal Reserve meeting today (apart from the Greece issue) for direction. The interest rate outlook is expected to remain unchanged. But I expect a higher inflation outlook. The global economy will not crash on the Greece issue and is expected to remain firm. One should invest in base metals and energies in small amounts at the current prices and on every ten percent dip for the medium term to long term. However Nickel has risen very quickly, better to wait and watch nickel for some time before investing.
COMEX TECHNICAL VIEW
NYMEX CRUDE OIL (1ST CONTRACT)
Bearish below $82.90 with $81.24 and $80.46 as price target
Bullish over $83.80 with $86.53 and $87.50 as price target
Neutral Zone between $82.90-$83.80
We prefer to buy crude oil only on a consolidated break of $83.80.
THIS IS JUST AN EXCERPT OF THE DAILY 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
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-- Posted Wednesday, 28 April 2010 | Digg This Article | Source: GoldSeek.com
