-- Posted Thursday, 23 May 2013 | | Disqus
It is very difficult to trade in current market volatility. Yesterday after Federal Reserve chairman Ben Bernanke’s testimony started, gold zoomed higher by more than twenty dollars in a few minutes only to pare the gains in the next twenty minutes. If one needs to take less risk then it is better not to trade and wait for the markets to find a direction and then trade. All stop losses will be hit for the day traders as well as jobber. The rise and the subsequent falls in gold makes me believe that it is headed for $1276 and $1155 over the coming weeks. Traders and investors are using every spike in gold to exit their gold ETF investment as well as gold futures investment. This is a bearish sign for gold.
Federal Reserve chairman has said that it will exit the QE program but did not specify the timeframe which has resulted in more outflows from the commodities. Sentiment is highly bearish and only short covering will lift gold and silver.
There is huge investment interest in copper by US hedge funds which will prevent copper prices from falling in a big way for the rest of the year.
COMEXTECHNICAL VIEW
COMEX SILVER JULY 2013 – current price $2204.00
Bullish over $2200 with $2295-2376 as price target
Bearish below $2160 with $2100-$1980 as price target
Neutral Zone between:$2160-$2200
Break point: $2200
- A consolidated fall below $2200 will result in $1975 and $1760
- Only a break of $2260 will resume the uptrend
MCX SILVER JULY 2013 – prices in Indian rupees below
If the Indian rupee continues to weaken against the US dollar then MCX commodities will not fall by much. Key support is at 43000 and silver can fall to 41099 and 40645 if it trades below 43000. Key long term support is at 40645 and there will be another wave of selling if silver trades below 40645to 37546. Only a sustained break of 44200 will resume the uptrend.
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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NOTESTO THE ABOVE REPORT
PLEASE NOTE: HOLDSMEANS HOLDS ON DAILY CLOSING BASIS
PLEASE USEAPPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
APPROPRIATE STOPLOSSES PER LOT IN US DOLLARS ON THE TRADINGCALLS 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 THEREPORT IS THE TIME OF COMPLETION OF REPORT
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-- Posted Thursday, 23 May 2013 | Digg This Article
| Source: GoldSeek.com
