-- Posted Wednesday, 6 October 2010 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
It’s just the bank of Japan interest cut rate along with supporting economic numbers from US and Europe which contributed to a weaker US dollar, higher stock and commodity prices. Technically overbought conditions still exist and a correction can happen anytime as and when there is selling news. But momentum is very bullish.
All eyes will be on the US September non farm payrolls on Friday and if the US dollar continues to weaken from next week then gold can rise to $1450, silver $2500, crude oil $91 and copper $391 before the close of October. The quicker the rise in commodities the chances of an even deeper correction will be higher. Use a combination of bull spreads to hedge your risk.
COMEX TECHNICAL VIEW
COMEX COPPER DECEMBER
Bullish over $369 with $377 and $381 as price target
Bearish below $363 with $359.00 and $353.00 as price target
Neutral Zone between: $363-$369
Copper now needs to break $379-$383 for $387 and $399.
NYMEX CRUDE OIL (1ST CONTRACT)
Bullish over $81.00 with $83.60 and $85.60 as price target
Bearish below $79.80 with $77.60 and $75.50 as price target
Crude oil targets $85+ as long as it trades over $81.0
MCX GOLD DECEMBER
Gold targets INR 19779 by next week as long as it trades over INR 19330. Intra day gold needs to float over INR 19420 to target INR 19660 and INR 19779. Sellers will be there on a consolidated fall below INR 19420 only.
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.
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-- Posted Wednesday, 6 October 2010 | Digg This Article | Source: GoldSeek.com
