-- Posted Tuesday, 3 August 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
All the key ingredients for commodities to rise are in place (1) A weaker US dollar (2) Around two percent rise in US and European stock markets (3) Lack of negative news. As long as this continues commodities will continue to rise. But I expect profit taking at the slightest of bad news. Trade in the momentum and buy on dips but use higher stop losses and watch to signs of intra day trend reversal.
I am a bit concerned as to why gold is firm. My logic is if equity markets rise till next week then there will be further outlfows of gold exchange traded funds (ETF) into equity markets and gold prices falling to $1146 and $1124 in short term before the next wave higher. At the moment physical demand is preventing gold prices from falling. Despite the medium term to long term bullishness in gold, short term bulls need to be a bit careful.
Technically all commodities are bullish and can rise further.
COMEX TECHNICAL VIEW
COMEX GOLD DECEMBER
Bullish over $1179 with $1193 and $1205 as price target
Bearish below $1174 with $1169 and $1157 as price target
Neutral Zone between $1174-$1179
Gold needs to trade over $1179 to be in intra day bullish zone
MCX GOLD OCTOBER
MCX Gold needs to trade over INR 17770 to in intra day bullish zone and target INR 17960-INR 18144. Intra day fresh wave of selling will be there below INR 17770 or failure to break INR 18000.
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
PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
Customer care: 9811139549/9311139549
You can also mail your queries at chintan@insigniaindia.com
-- Posted Tuesday, 3 August 2010 | Digg This Article | Source: GoldSeek.com
