-- Posted Thursday, 19 August 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
It was a very big recovery by all commodities from the low yesterday. It seems that shorts got covered in a big way which resulted in all of them closing at higher prices. Yesterday’s reversal is very positive for gold, silver, copper and crude oil which suggest that more gains could be in store if they are able to trade over yesterdays lows. This also suggests that investors will be using the dips to invest in gold and base metals. The US dollar has gained, stocks are flat which implies that markets are waiting for more news before taking short term position.
There is huge demand of copper and other base metals from Germany. After China it seems that Germany is gobbling all the base metal scrap that’s available. The rise in the German economy is mainly due to a weaker euro which the nation has taken maximum advantage of. If this trend in Germany continues then base metals are expected to rise another ten percent in the short term before falling. German’s high demand for base metals cannot continue endlessly. It will fall once the effects a weaker currency goes off.
TODAY
Technically gold, silver and copper are bullish while crude is not out of the woods. Tomorrow’s close will set the trend for the rest of the month. Key closing prices to watch tomorrow for maintenance of bullish trend next week.
COMEX TECHNICAL VIEW
COMEX GOLD DECEMBER
Bullish over $1222.00 with $1234.75 and $1244.70 as price target
Bearish below $1219 with $1212.00 and $1202 as price target
Neutral Zone between $1219-$1222
Gold has managed to trade over $1222 and can now rise to $1248 and $1272 in short term as long as it trades over $1219 and $1219. Intra day we prefer to buy only on a consolidated break of $1234
TECNICAL VIEW
MCX GOLD OCTOBER
Bullish over 18570 with 18768 and 18903 as price target
Bearish below 18460 with 18360 and 18235 as price target
Neutral Zone: 18460-18570
Gold needs to break 18725-18750 zone for 19000. On the lower side as long as 18500-18550 zone holds downside risk will be limited.
MCX CRUDE OIL SEPTEMBER
Bearish below 3501 with 3422 and 3358 as price target
Bullish over 3552 with 3601 and 3710 as price target
Neutral Zone: 3501-3552
Crude oil has managed to close over 3500 and now needs to trade over 3500 for the rest of the day to be bullish zone.
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 Thursday, 19 August 2010 | Digg This Article | Source: GoldSeek.com
