-- Posted Tuesday, 25 September 2012 | | Disqus
The fall in gold and silver and the gains in the US dollar seems to be partially affected by quarter end profit taking which only if it continues into next week will result in a short term bear phase, or else dips are a buying opportunity. There will be huge physical gold demand below $1750 till $1720 and it will not be easy to fall below $1720 in the short term. Silver’s gains could be curtailed by weak global economic fundamentals.
My close friend Peter Spina of www.goldseek.com writes on facebook that a re election of current US president Barack Obama is more or less certain and that his reelection will be highly bullish for gold. I echo his views and believe that the $40 billion bond purchases by the Federal Reserve will lead the world to a very long recession. To stop this Ben Bernanke as Federal Reserve chairman will have to leave his office which is only possible if Mitt Romney becomes the US president.
San Francisco Fed President John Williams at a speech at the City Club yesterday
The Federal Reserve could expand its stimulus package to include assets other than mortgage-backed securities if the U.S. economy fails to respond to its latest effort to jump-start the economy. The US consumer itself will get frustrated and will ask for his ouster first.
Sharp gains in gold and silver will be there only if there is huge US dollar weakness. If the US dollar gains the pace of the rise for gold and silver will be slow.
Trading strategy for the very large traders and high risk traders
COMEX GOLD: $1750-$1796 wider trading to continue. Buy on dips with a stop loss below $1737 for the rest of the week.
COMEX SILVER: Buy on dips with a stop loss below $3348. If the stop loss is hit then sell for $3215-$3155
COMEX COPPER: Buy on sharp dips with a stop loss below $364
NYMEX CRUDE OIL: Sell only if crude oil trades below $92.00
GOLD DECEMBER 2012 TECHNICAL LEVELS |
SUPPORT | RESISTANCE |
S1 | S2 | S3 | S4 | R1 | R2 | R3 | R4 |
$1,736.80 | $1,750.10 | $1,757.20 | $1,765.30 | $1,779.20 | $1,787.70 | $1,796.50 | $1,810.00 |
SILVER DECEMBER 2012 TECHNICAL LEVELS |
SUPPORT | . |
S1 | S2 | S3 | S4 | R1 | R2 | R3 | R4 |
$3,258.00 | $3,318.00 | $3,374.00 | $3,406.00 | $3,426.00 | $3,478.00 | $3,505.00 | $3,524.00 |
COPPER DECEMBER 2012 TECHNICAL LEVELS |
SUPPORT | RESISTANCE |
S1 | S2 | S3 | S4 | R1 | R2 | R3 | R4 |
$361.10 | $365.50 | $371.30 | $374.50 | $378.90 | $381.00 | $385.20 | $387.60 |
CRUDE OIL (1st Contract) |
SUPPORT | RESISTANCE |
S1 | S2 | S3 | S4 | R1 | R2 | R3 | R4 |
$88.30 | $89.72 | $90.34 | $92.00 | $93.42 | $95.53 | $97.20 | $99.20 |
COMEX TECHNICAL VIEW
COMEX GOLD DECEMBER 2012 – current price $1768.70
Trading Strategy: Buy only if gold trades over $1796
Bullish over $1762 with $1786 and $1810 price target
Bearish below $1758 with $1742 and $1714 as price target
Neutral Zone between $1758-$1752
Break point: $1772.40
- There is a technical congestion between $1790-$1810 and gold needs to break this zone by Friday else it will fall to $1741 and $1711 first before the next leg higher.
- There will be sellers only below $1752
- Trading call: Buy at $1747 stop loss $1731 for $1787-$1796
MCX GOLD OCTOBER 2012
(All prices in Indian rupees below)
Bullish over 31540 with 31630-31960 as price target
Bearish below 31440 with 31263-30998 as price target
Neutral Zone: 31535-31680
BREAK POINT: - 31235
· Today gold needs to trade over 31235 else it will fall to 31110-30920
· There will be buyers on dips as long as gold trades over 31200
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
Disclosure: Insignia consultants or it employees do not have any trading positions on the trading strategies mentioned above. Our clients do have positions on the trading strategies mentioned in the above report.
Trade without emotions & Have a great weekend.
"Print this report only if absolutely necessary. Save Paper. Save Trees."
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.
APPROPRIATE STOP LOSSES PER LOT IN US DOLLARS ON THE TRADING CALLS GIVEN IN THIS 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
THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
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-- Posted Tuesday, 25 September 2012 | Digg This Article
| Source: GoldSeek.com
