-- Posted Friday, 7 May 2010 | Digg This Article
| | Source: GoldSeek.com
ASIAN METALS MARKET UPDATE
There is lot of panic over yesterday’s US stock markets plunge. But for the moment this is just a technical correction for me and nothing else. Only if the stock markets continue fall for more than a fortnight then it will be in a medium term bear zone else sharp dips should be used as a long term investment opportunity. Just prepare a list of stock you would like to buy so that you are not confused when the buying opportunity comes. But please do not go for bottom fishing unless you have a high risk appetite or have a higher amount of margin money. My personal preference has been to invest once a bottom has been formed and the rise begins. Buying in a falling market is trying to catch a falling knife. In my view global economic fundamentals are strong. A weaker euro has resulted in higher exports from the eurozone which will result in further demand for base metals and energies. There are lots of concerns on China trying to calm down its property market which in my view will take at least a year to fall. Base metals demand from China should fall in 2011 and not in 2010 (in a big way). However the global economic situation has warranted a demand to safe havens which can result in further losses. In India physical traders and buyers of base metals have started replenishing their base metal inventories and are expected to increase the same with every five percent correction.
We have the US April non farm payrolls today. I expect gold to fall today and base metals to rise further after the numbers. There will be position squaring and rebuilding for next week as most of the event risk and economic number risk are over this week.
COMEX SILVER JULY
Bullish over $1726 with $1788 and $1826 as price target
Bearish below $1705 with $1676 and $1636 as price target
Neutral Zone between $1705-$1726
100 day moving average at $1726 is the key support and silver needs to trade over $1726 to be in bullish zone and target $1800 and $1880.
NYMEX CRUDE OIL (1ST CONTRACT)
Bullish over $76.36 with $78.10 and $81.60 as price target
Bearish below $75.30 with $73.20 and $71.30 as price target
Neutral Zone between $75.30-$79.76.36
200 day MA of $76.36 is the support.
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 Friday, 7 May 2010 | Digg This Article | Source: GoldSeek.com
