-- Posted Friday, 12 August 2011 | | Disqus
· CME hikes gold margins 22 pct, fuelling correction
· Europe curbs short-selling as credit markets swoon
· French bank stress spreads across money markets
TODAY
There is speculation that CME could increase further margins on gold. At lower prices short sellers square up their positions and value based buyers/investors turn up. This is the weekend and trades will dare not go short on gold and silver on US and European economic woes. Base metals and energies will follow equities but technically they have hit a short term bottom and that they need to close below this week’s lows (for the rest of the year) for another wave of selling. As long as base metals and energies trade over this week lows they will rise further. I am cautiously optimistic in base metals and energies. Indian markets are closed on Monday. There will not be any gold demand from India. India is a key nation for gold. Hedging demand from India will not be there. We expect gold prices to fall on Monday.
COMEX TECHNICAL VIEW
NYMEX CRUDE OIL (1ST CONTRACT)
Bullish over $83.20 with $86.80 and $90.20 as price target
Bearish below $82.20 with $79.90 and $77.60 as price target
- A break of $86 will result in $90+
- A close over $86 will result in $92+ next week
- Trading call: Buy over $86 for $88 and $90 OR sell below $84.20 for $82.20
MCX CRUDE OIL
Bullish over 3820 with 3980 and 4150 as price target
Bearish below 3760 with 3630 and 3500 as price target
Neutral Zone: 3760-3820
- A short term bottom has been formed around 3500 and crude oil can rise to 4300-4600 as long as it trades over 3500
- Intra day crude oil targets 3900-4100 as long as it trades over 3700
- Momentum call: Buy over 3830 for 3900-4000 OR Sell below 3780 for 3730-3670
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 Friday, 12 August 2011 | Digg This Article
| Source: GoldSeek.com
