-- Posted Friday, 22 July 2011 | | Disqus
COMEX DAILY REPORT
WHERE WILL THE INVESTOR FOCUS SWITCH TO
In 2011 the theme for the global financial markets has been (A) Pro Democratic Uprising in the Middle East and North Africa region along with bombardment of Libya (B) Greece and other European sovereign debt default issues (C) US debt default. More focus has been on these issues instead of global economic fundamentals. This has resulted in safe havens rising. Central banks and as well as investors know that changing the budget deficit or any part of an economy will not happen overnight. There is no magic wand. It will take time and sustained effort. The use of soft measures by central banks will be beneficial in the short term but these central banks will hit the axe on their own foot in the long term.
Why is a small nation like Greece taking the world to a ransom? This has to be answered. My answer is that some vested nations like Germany, France, US and allies want an indirect control of Greece as they cannot bombard Greece. Greece does not have weapons of mass destruction. Greece has fallen in the trap laid by western vested nations. Greece issues will not die down soon. Gold and other safe havens demand will continue to rise.
Once the European debt issues and US debt related issues are resolved temporarily what will the investor look at? Obviously the focus will be on fundamentals, which are not very rosy. Near Zero interest rates will result in volatile market and changing speculative flows from one asset class to another. The US dollar will be the biggest gainer as Germany and other Euro zone nation growth show signs of forming a stop and a weaker US dollar starts to have a positive effect on the US economy. Safe havens will fall.
TODAY
Efforts on US deficit caught up in a big way among the US law makers. This has resulted in profit taking. Its too early to be optimistic on US debt issues. This will prevent traders and investors from going short on the weekend.
Euro zone leaders have agreed on a bold rescue package for debt-stricken Greece and will give their financial rescue fund sweeping new powers to prevent market instability spreading through the region. An emergency summit of leaders of the 17-nation currency area announced on Thursday a second bailout for Athens involving an extra 109 billion euros ($157 billion) of government money, plus a substantial contribution from private sector bondholders. The Greece issue could be temporary settled by the end of the quarter.
It will be a volatile day. Trade in the technical.
TODAYS VIEW
Spot Gold: Gold will consolidate in $1570-$1620 range. This range will be broken by Monday and a new range will be formed.
Spot Silver: A close over $38.25 will be very positive for next week. Silver targets $40.45 and $42.50 as long as it trades over $37.40
COMEX TECHNICAL VIEW
COMEX GOLD AUGUST
Bullish over $1596 with $1608 and $1626 as price target
Bearish below $1593 with $1579.10 and $1559 as price target
Neutral Zone between $1593-$1596
- Failure to break $1619 by Monday will result in a fall back to $1570 and below. There are buyers at lower prices as long as gold trades over $1570
- keep a close watch at $1593
- Trading call: Sell below $1593 for $1585 and $1577 OR sell around $1619 stop loss over $1632
COMEX SILVER SEPTEMBER
Bullish over $3925 with $4045 and $4176 as price target
Bearish below $3860 with $3740 and 3540 price target
Neutral Zone between: $3860-$3925
- (A) A close over $4045 today will be very bullish for silver with $4280 as target for next week. (B) A close over $3740 will be bullish for August with $4540 and $4860 as target for August.
- Intra day silver needs to trade over 3925 to be in a bullish zone
- Trading call: Sell below $3910 for $3870 and $3810 OR buy over $3960 for $4005 and $4045.
- Limit Order: Buy around $3740 stop loss below $3580 price target $4045 and $4290
COMEX COPPER SEPTEMBER
Bullish over $441.70 with $449.90 and $458.40 as price target
Bearish below $437.80 with $431.60 and $421 as price target
Neutral Zone between: $437.80-$441.70
- Failure to break $449 by Monday will result in a fall back to $429 and $419 by next week.
- Overall bullish over $437
- Trading call: Sell around $457-$459 stop loss over $466 OR sell below $438 for $433 and $429
NYMEX CRUDE OIL (1ST CONTRACT)
Bullish over $97.00 with $100.50 and $102.30 as price target
Bearish below $95.50 with $93.90 and $90.50 as price target
- $100.50 is the key resistance and crude oil needs to break $100.50 for $105
- There will be sellers below $97.0
- Trading call: Sell around $101.50-$102 stop loss over $102.90
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 employee 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
Happy profitable Trading
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PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
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-- Posted Friday, 22 July 2011 | Digg This Article
| Source: GoldSeek.com
