-- Posted Thursday, 6 January 2011 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
Copper has been supporting all commodities. Copper rose despite gains in the US dollar. The rise in copper is supporting silver. Had copper fallen then silver would have fallen like a pack of cards. Higher base metal prices will prevent commodities from falling and they will be de linked from movements in the currency markets.
The number of U.S. private-sector jobs surged in December at a rate three times stronger than forecast, the most bullish signal in months that a recovery in the world's biggest economy is shifting up a gear. Private employers added 297,000 jobs last month, payrolls processing company ADP Employer Services said on Wednesday. It was the largest gain on ADP records dating to 2000. If US hiring continues to increase in the first quarter then expectations of higher interest rates in the US will rise and one can expect further gains in the US dollar and base metals and energies.
Base metals will be the key driver for all commodities.
COMEX TECHNICAL VIEW
NYMEX CRUDE OIL (1ST CONTRACT)
Bullish over $90.60 with $92.20 and $94.50 as price target
Bearish below $89.80 with $87.50 and $86.50 as price target
The correction in crude oil seems to be over and it looks headed for $103 now. We prefer a buy on dips strategy as long as crude oil trades over $85 for the whole of January.
MCX CRUDE OIL
MCX crude oil needs to trade over 4121 for the whole day to be in bullish zone and target 4200. There will be sellers as long as crude oil trades below 4121.
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, 6 January 2011 | Digg This Article | Source: GoldSeek.com
