-- Posted Thursday, 16 June 2011 | | Disqus
COMEX DAILY REPORT
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
It’s all about Greece. Greek Prime Minister George Papandreou said he will form a new cabinet on Thursday and seek a vote of confidence from his fractious Socialist party to see through a harsh austerity bill, as riot police battled tens of thousands of protesters in the heart of Athens.
A lot of long term implications and multiplier effects could be there for Greece, the eurozone and the euro as a currency. The big question for me will be “Is Greece too big a nation to fail,” just like we had some US banks classified as “too big to fail” by the Federal Reserve in 2008? This is a very important question which I will look for clues. I remember as a kid in school I used to say chemistry is Greek to me and the handling of Greece debt looks like Greek to me. The eurozone members and Greece politicians are trying to find a magic wand like solution for a deep rooted embedded ill on the Greece economy and the magic wand has failed to deliver. The people of Greece are suffering at the cost of their elected leaders and they won’t accept any measures which affect their lives. Protests are bound to be there. The net result for global financial markets are: (A) High intraday volatility (B) Sell off in euro/usd (C) Overall greater demand for safe havens (D) Continued low interest rate regime in Eurozone and US (E) Investor will be forced to sit on cash.
A mini double bottom has been formed in gold around $1512 which suggests that gold can rise to $1542 and $1552 as long as gold trades over $1512. Base metals and energies will be volatile. The current volatility in financial markets will prevent analysts and traders to take a summer break.
COMEX TECHNICAL VIEW
COMEX GOLD AUGUST
Bullish over $1519 with $1532 and $1547 as price target
Bearish below $1510 with $1504-$1493 as price target
Neutral Zone between $1510-$1519
- Gold needs to trade over $1522 for the whole day to be in bullish zone and target $1541 and $1555
- There will be sellers below $1522
- Trading call: Buy over $1527 for $1533 and $1541 OR sell below $1521 for $1515 and $1508
COMEX SILVER JULY
Bullish over $3510 with $3640 and $3740 as price target
Bearish below $3470 with $3390 and 3320 price target
Neutral Zone between: $3470 and $3510
- There is a technical congestion between $3300-$3430 and as long as silver trades over this zone in the short term it will rise to $3900+. There will be a technical breakdown below $3300 all the way to $2980 and below
- Intra day silver needs to trade over $3510 to target $3640 and $3740
- Trading call: Buy around $3430 stop loss below $3380 OR buy over $3585 for $3615 and $3650
COMEX COPPER JULY
Bullish over $412.10 with $419.40 and $423.60 as price target
Bearish below $407.20 with $402.10 and $394 as price target
Neutral Zone between: $407.20-$412.10
- Copper still needs to trade over $408 to be in a bullish zone
- Overall bullish over $408
- Trading call: No Call
NYMEX CRUDE OIL (1ST CONTRACT)
Bearish below $97.40 with $94.60 and $90.80 as price target.
Bullish over $99.20 with $100.60 and $102.20 as price target
- 200 day moving average is at $92.16 and crude oil needs to trade over $92.16 to be in long term bullish zone.
- Trading call: No Call
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, 16 June 2011 | Digg This Article
| Source: GoldSeek.com
