-- Posted Thursday, 22 September 2011 | | Disqus
Executive summary
- Fed Will Shift Holdings to Longer-Term Securities
- Trade in the technicals
- Copper is the key long term support of $366
- Gold needs to break $1850 by tomorrow else it will fall to $1690
- Silver key support is at the 100 day MA at $3827
- Base metals are oversold
FEDERAL RESERVE MEETING
The central bank will buy bonds with maturities of six to 30 years through June while selling an equal amount of debt maturing in three years or less, the Federal Open Market Committee said today in Washington after a two-day meeting. The action “should put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative,” the FOMC said.
EFFECT: The US dollar should gain and stock and commodities will fall further. Now its back to square one as the future direction will depend on further economic numbers. The good thing is that the Federal Reserve did not inject any further liquidity into the markets which will reduce the pace of rise of gold going forward. Do not expect a $400 rise every quarter in gold as it has happened in July 2011 to September 2011 quarter. This quarter is history.
TODAY
Trade in the technical. Gold looks bearish and it remains to be seen whether greater physical demand and investment demand will prevent gold prices from falling. Gold and silver have formed an inverted head and shoulder formation on the charts which is a bearish on the short term charts. The bearish trend in gold is subject to gold trading over $1752 and silver trading over $38.27.
Euro-US dollar is below the 400 day moving average of 1.3571 and that it can fall to 1.3272-1.2775 in short term if it closes below 1.3571. Sharp gains of the US dollar will be bearish for all commodities in the short term.
COMEX TECHNICAL VIEW
COMEX SILVER DECEMBER
Bearish below $4020 with $3920-$3840 and $3720 as price target
Bullish over $4080 with $4176-$4225-$4305-4360 as price target
Neutral Zone between: $4035-$4080
Break point: $3827-$4050
- Two successive lower daily closing below $4064 suggest that silver can fall to $3820 and $3540 in short term as long as it trades below $4064
- Trading call: Buy around $3820 stop loss below $3780
MCX SILVER DECEMBER
Bullish over 64900 with 64808-65315 and 66893 as price target
Bearish below 64500 with 63050-62343 and 60278 as price target
Neutral Zone: 64500-64900
BREAK POINT: 64300
- Silver will break free from 62700-66000 consolidation phase by tomorrow and form a new range. There will be a technical break down below 62700
- Momentum call: Sell below 64500 for 63500-62000 or buy over 65000 for 65600-66200 stop loss below 64600
- Limit order: Buy around 61300 stop loss below 59700
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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You can also mail your queries at chintan@insigniaindia.com
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
-- Posted Thursday, 22 September 2011 | Digg This Article
| Source: GoldSeek.com
