-- Posted Wednesday, 12 October 2011 | | Disqus
The parliament of tiny Slovakia stalled the expansion of a bailout fund to rescue the euro zone from its debt crisis. But Greece will get the aid. For now, Greece needs an immediate infusion of cash within weeks just to meet state payrolls.
The key eurozone nations have shown a united front for the rescue to member nations and banks. The Eurozone members are rescuing each other in order to save the euro and member nations political interest. The rescue involves increasing liquidity by either issuing more bonds and/or increasing money supply. Excess liquidity is always inflationary. What if over the coming years this rescue package also fails and the nations fail to recover their loans from Greece and other rogue states. The next time they may not be able to rescue at all and the euro as a currency will disintegrate. The currency rescue measure has only delayed the demolition and vanishing of euro as a currency. More and more central banks with very high euro foreign exchange reserves will in the future aggressively push for diversification away from the US dollar as well as the euro. Investment in gold, energies and other essentials of national importance will rise. I am bullish on gold and silver this quarter and will prefer to use any ten percent dip (if any) to invest for the New Year.
In the short term euro-US dollar may rise to 1.4350 but in the long term I still expect the euro to fall to 1.2875 and 1.2225. The only risk to my bearish view on the euro-US dollar is that of Federal Reserve starting another round of quantitative easing.
The US dollar is the key for all commodities.
MCX COPPER NOVEMBER
Bullish over 361 with 375-387 as price target
Bearish below 355 with 349-355 as price target
Neutral Zone: 355-361
BREAK POINT: 355-364
- Copper targets 376 as long as it trades over 355
- There will be if and only if copper trades below 359 in US session
- Momentum call: Buy over 361 for 364-369 or sell below 357 for 354-348
MCX CRUDE OIL
Bullish over 4223 with 4280-4350 as price target
Bearish below 4170 with 4130-4060 and 3935 as price target
Neutral Zone: 4170-4223
BREAK POINT: 4223
- Crude oil targets 4280 as long as it trades over 4223
- There will be sellers on a consolidated fall below 4223
- Momentum call: Sell below 4223 for 4190-4150 or buy over 4250 for 4280-4310
HAPPY PROFITABLE TRADING
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
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.
PLEASE USE A STOP LOSS OF MINIMUM RS.5000-RS.8000 PER LOT ON ALL INTRA DAY TRADES
ALL PRICES ARE IN INDIAN RUPEE UNLESS OTHERWISE SPECIFIED
APPROPRIATE STOP LOSSES PER LOT IN INDIAN RUPEEES ON THE TRADING CALLS GIVEN IN THIS REPORT
THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
GOLD – 15000-16000
SILVER: 15000-16000
COPPER: 2500-3500
CRUDE OIL: 3800-5000
ZINC: 4000-6000
LEAD: 5000-6000
NICKEL: 2500-5000
NATURAL GAS: 4000-6000
Customer care: 9311139549
-- Posted Wednesday, 12 October 2011 | Digg This Article
| Source: GoldSeek.com
