-- Posted Wednesday, 21 September 2011 | | Disqus
Executive summary
- All eyes are on the Federal reserve meeting
- IMF lowers global growth forecast
- Japan swings to worse-than-expected trade deficit
- Gold needs to trade over $1804 to be in bullish zone
- Silver needs to trade over $40.27 to be bullish zone
- Comex Copper key long term support is at $366
TODAY
All eyes are on the Federal Reserve meeting and there are expectations that it will cut interest rates indirectly and/or start some form of quantitative easing. Technically gold and silver are in a neutral zone to bullish zone while copper is in oversold zone. The inverse correlation between gold and euro-US dollar will continue for the rest of the week. A weaker euro suggests that all is not well in eurozone and vice-versa.
POSSIBILTIES AFTER THE FEDERAL RESERVE MEETING
(A) QE3 is announced: Much of this has already been factored in by the markets. But still it will be bullish for all commodities. We could see the US dollar falling, stock markets and commodities all rising in tandem. Spot gold can rise to $1930 by Friday and $2130 in short term if QE3 is announced. Spot silver can rise to $48.50 in short term if QE3 is announced.
(B) No QE3 but some other form of indirect measures to spruce up US economy: Gold and silver can fall first to $1630-$1690 zone and $37.0-$38.40 zone and then another ten percent rise in the short term. Base metals and energies will rise on technical as it has already been sold out.
COMEX TECHNICAL VIEW
COMEX COPPER DECEMBER
Bearish below $384 with $373 and $361 as price target
Bullish over $387 with $399.60 and $408 as price target
Neutral Zone between: $384-$387
Break point: $387
- $366 is the key long term support and a close below $366 on Thursday will result in $330 and $303 in short term. Copper needs to trade over $366 for long term bull run to be in bullish zone
- Trading call: Use a sell on rise strategy till copper does not break $387 and book profits as near to $366
- Limit order: buy around $366 stop loss below $346
MCX COPPER NOVEMBER
Bullish over 405 with 411 and 415 as price target
Bearish below 398 with 391.10and 381.40 as price target
Neutral Zone: 398-4058
BREAK POINT: 398.30.
- The key support is at 398.30 and copper needs to trade over 398.30 to be in bullish zone and target 411+. There will be sellers below 398.30 all the way to 391 and 381.
- Momentum call: Buy around 386 till 381 stop loss below 370 for 411+
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
Happy profitable Trading
NOTES TO THE ABOVE REPORT
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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APPROPRIATE STOP LOSSES PER LOT IN US DOLLARS ON THE TRADING CALLS GIVEN IN THIS REPORT
THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
COMEX GOLD – $15-$17
COMEX SILVER: $25-$30
COMEX COPPER: $3
NYMEX CRUDE OIL: $0.60
SPOT SILVER: $0.25
SPOT GOLD: $15-$17
MCX COPPER: Rs.4000-Rs.5000 per lot
-- Posted Wednesday, 21 September 2011 | Digg This Article
| Source: GoldSeek.com
