-- Published: Friday, 19 December 2014 | Print | Disqus
Indian demand for gold and silver will start to rise from the middle of January. Chinese jewelers and Chinese physical dealers will be hoarding gold and silver for the Chinese New Year in early February. We prefer a buy on sharp dips strategy for gold and silver from now till the end of January. Be patient and have very high margin money if you are trading in futures. One can start buying far dated gold and silver call options (September 2015 till June 2016) as premiums are very low. I also like buying far dated crude oil call options. To me at this price level, all metals and energies are an excellent opportunity to buy far dated call options.
Yearend profit taking in gold and silver and crude oil can result in a very big rise anytime. The reaction of gold and silver after the FOMC has been excellent. However gold and silver need to trade over $1160 and $15.40 for the rest of the year to be in a bullish zone.
As far as the currency markets are concerned, the European central bank is expected to announce more quantitative easing in January. The Bank of Japan already wants a weaker Yen against the US dollar. The Euro-US dollar can fall to 1.1975 and 1.1375 in case ECB announces more QE. The euro/usd fall to 1.1375 (if any) will create more downward price pressure in gold and silver. The European central bank meeting in January could be a big threat to gold and silver bulls. The rest of the factors (apart from currency markets) are more gold and silver positive than negative.
Traders will start taking positions for Christmas and New Year. There will be blips of big one wave moves followed by long periods of consolidation for the next three weeks. Have patience and trade carefully.
TECHNICAL VIEW
COMEX SILVER MARCH 2015 – current price $1591.50.
Bullish over $1602 with $1646-$1731 as price target
Bearish below $1560 with $1539-$1486 as price target
Neutral Zone between: $1560-$1602
- Silver needs to trade over $1560 till Monday to prevent another big sell off.
- Jobbers watch $1604 and $1560 all the time.
- There will be buyers if and only if silver trades over $1604 in US session. (sell off only below $1560).
MCX SILVER MARCH 2015 – prices in Indian Rupees below
For the rest of the year: The next wave of selling will be there only below 35700 to 34300 and 33200. However as long as silver trades over 35700, there is every possibility of a rise to 39700 and 41250.
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
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UK session starts around 1:30 pm Indian Standard Time (+5:30 GMT) -- after the release of LME daily inventories
US session starts at 6pm 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: Friday, 19 December 2014 | E-Mail | Print | Source: GoldSeek.com
