-- Posted Thursday, 4 October 2012 | | Disqus
General market conditions
It is very difficult to trade in periods of low intra day volatility. We are used to very high volatility these days. Trading as well as advising for intraday trade is not easy. There is always a fear that a one way movement can come anytime on either side and trigger our stop losses. Technical bullishness is there but days like yesterday are very few. We are not used to trade in $7-$8 (gold price) intra day moves. The best way to trade is to keep quiet and wait for a break of key support or resistance and then initiate a buy or a sell.
The fall in crude oil prices should be good for the global economy as well as Barack Obama. It remains to be seen how long Nymex crude oil trades below $90.00. If crude oil prices float below $90.00 for the rest of October then the positive effects on the global economy will be felt from early next year.
We have the bank of England meeting today and US September non farm payrolls on Friday. This will prevent traders from going short. Either traders will hold on to their long positions or go long on dips. Gold and silver bears are not seen anywhere.
COMEX TECHNICAL VIEW
NYMEX CRUDE OIL (1ST CONTRACT) - current price $88.05
Bullish over $90.50 with $91.70 and $94.40 as price target
Bearish below $88.85 with $86.46 and $85.19 as price target
Break point: $88.85
- $88.85 is the key support and crude oil needs to trade over $88.85 to target $90.50
- There will be a technical break down below $88.85 to $83.45 and $80.30.
- A daily close below $90.00 today and tomorrow can result in $77 next week
MCX Crude Oil
(All prices in Indian rupees below)
The Key long term support is at 4589 and crude oil needs to trade over 4589 for the whole of October to target 4953-5042. Only a daily close below 4589 for three consecutive days will result in 4381 and 4190. Intraday crude oil needs to trade over 4679 to be in bullish zone and target 4760.
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.
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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 Thursday, 4 October 2012 | Digg This Article
| Source: GoldSeek.com
