-- Posted Wednesday, 28 July 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
A technical breakdown below the 100 day moving average at $1180 resulted in stop losses getting triggered and gold falling like a pack of cards yesterday. The big question is whether this is a part of a bear trend. Short term technicals are showing a bearish divergence but I will prefer to use the current dip and further dips to invest for Diwali and for 2011. The current correction in gold is just a part and parcel of a long term sustainable bull rally. Had gold continued to rise without any breaks to $1350 or $1500 it would have been a bubble case. Physical demand in India will rise in a big way today and will continue all the way till INR 17500 or $1140.
As far as silver, base metals and energies are concerned, they will track stock markets and the US dollar. The global stock markets continue to rise then some of the gold ETF flows will move into stocks and gold can fall further. The reverse will happen if stocks fall then investors will move away from stocks to gold which can result in gold rising to $1350 before the close of the quarter. The performance of stock markets will be the key for gold in the next two months.
Watch for key technical support and invest. Long term investors buy far dated gold and silver call options. Silver call options and Crude oil far dated call options should give higher returns than gold.
COMEX TECHNICAL VIEW
COMEX SILVER SEPTEMBER
Bullish over $1764 with $1805 and $1840 as price target
Bearish below $1748 with 1735 and $1708 as price target
Neutral Zone between $1748-$1764
Silver was saved yesterday from a crash due to firm base metals. Not out of the woods and needs to trade over $1748 to prevent a fresh wave of selling to $1708.
COMEX COPPER SEPTEMBER
Bullish over $320.00 with $327 and $333 as price target
Bearish below $315 with $309 and $303 as price target
Neutral Zone between: $315-$320
Yesterdays close over $320 is very positive which suggest copper can rise to $340 in short term. Intra day fresh wave of selling will be there below $315 or failure to trade over $320.
MCX COPPER AUGUST
MCX copper needs to break and trade over INR 339-INR 341 by next week and failure to do so will result in a fall to 325 and 309. Intra day fresh wave of selling will be there below INR 328.
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 July 2010 | Digg This Article | Source: GoldSeek.com
