-- Posted Tuesday, 16 April 2013 | | Disqus
Gold can fall to $1276 and $1055 as long as it trades below $1380
Silver will see another wave of selling below $2176 to $1976 and $1735
Copper needs to trade over $322 to target $339-$356
Crude oil looks headed for $84.50 and $82.20 as long as it trades below $88.90
A lot of our clients were long in gold and silver on Friday. We had advised to use a trailing stop loss of $1518 and to reverse the buy position into sell position when gold prices fell below $1518. For silver we had advised to use a trailing stop loss of $2590 and to reverse buys into sells when silver prices fell below $2590. This strategy has so far worked to perfection.
How long will gold and silver fall continue is a bit difficult to comment. I still maintain that fifty percent corrections from the high are a part and parcel of a long term bull rally. One needs to have spare investible funds so that they can start investing in gold and silver in very small amounts and aggressively if and when gold prices near $1000. If you are already invested in gold and silver then you will get positive returns from 2015 onwards. It may take another eighteen months to twenty months to restart another bull run to $5000. When I write $5000 some of you me thinking that only fools will be bullish on gold. My reason for a gold price rise to $5000 is that (1) the purchasing power of currencies will fall further or if I rephrase it purchasing power of currencies will never rise (2) Protectionism is on the rise and nations will ignore free trade pacts to spruce up jobs in their own lands (3) This is the last cycle of US dollar gains and the next cycle of US dollar fall will be only the demise of the greenback and gold rising to mars and beyond the reach of me and you. (4) Under the worst case scenario if all hell breaks loose then gold price can fall to $800. Gold miners have a cost of around $800 and they will not sell gold below $800. (5) Gold prices are being manipulated by unified action of central banks and is the key reason for the fall (6) Quantitative easing (QE) will fail miserably and could be another Vietnam in the making for global economy. (7) Investment in stocks are not as safe as one perceives.
COMEX TECHNICAL VIEW
COMEX GOLD JUNE 2013 – current price $1350.80
Bullish over $1380.00 with $1430.10 and $1530.00 price target
Bearish below $1330.00 with $1303.70 and $1272.10 as price target
Neutral Zone between $1330-$1380
Break point: $1380
$1380.10 price target achieved. Key long term support is at $1270 and as long as gold trades over $1270 the chances of a rise to $1530-$1600 are high.
There will be another wave of selling below $1270 to $1055
A daily close below $1380 today will be highly bearish for gold.
MCX GOLD JUNE 2013 – prices in Indian rupee below
Despite the bearish momentum another wave of selling will be there only if gold trades below 24600 to 23356 and 21612. As long as gold trades over 24600 we caution against going heavily short. Intraday only a break of 25900 will resume the bullish direction.
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 Manan Somani
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 Tuesday, 16 April 2013 | Digg This Article | Source: GoldSeek.com