-- Published: Wednesday, 19 February 2014 | Print | Disqus
- Technically gold, silver, copper and crude oil are all bullish.
- The next two days are very crucial for gold and silver from a technical perspective.
Gold is firmly entrenched over $1310 but needs to break $1331 for another set of rise. There are still huge short positions in gold and silver. The problems is that whenever gold and silver consolidates for a few hours, traders go short. In my view traders are still holding on to their short positions. Unless there is a $20-$25 instant rise in the gold price (from current levels), these short positions will not get squared off. Silver needs to trade over $2125 to be in an intraday bullish zone.
China, the largest foreign U.S. creditor, reduced holdings of U.S. Treasury debt in December by the most in two years as the Federal Reserve announced plans to slow asset purchases. Reduced issuance of bond purchases will result in nations reducing their US treasury holdings. However unofficially China continues to increase its gold reserves which itself suggests that the long term bullish trend is intact for gold. The inverse correlation between central bank purchases and their US treasury holdings will be for the rest of the year.
Physical demand for gold and silver should rise as the week progresses. There will be buyers on dips as long as gold trades over $1290 and silver trades over $2036 in the near term. Higher energies prices will dent emerging market growth.
TECHNICAL VIEW
NYMEX CRUDE OIL (1ST CONTRACT) - current price $102.75
Bullish over $100.80 with $104.50 and $107.20 as price target
Bearish below $99.40 with $97.40 and $96.10 as price target
Break point: $102.80
- Crude oil can rise to $105-$107.60 as long as it trades over $100.80
- The lower price base for the rest of the month is at $100.80 for now
MCX CRUDE OIL - prices in Indian rupees below
Crude oil can rise to 6440 and 6518 either today or tomorrow as long as it trades over 6260. Initial support is at 6216.
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
UK session starts around 2:30 pm Indian Standard Time (+5:30 GMT) -- after the release of LME daily inventories
US session starts at 7pm pm Indian Standard Time (+5:30 GMT)
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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-- Published: Wednesday, 19 February 2014 | E-Mail | Print | Source: GoldSeek.com
