-- Published: Thursday, 8 January 2015 | Print | Disqus
Day traders and jobbers are having a difficult time. There is two way movement. When you buy prices fall. When you sell prices rise. The best way to trade is to use higher trailing stop losses below key technical supports or resistances. Reduce the number of lots. Low risk traders avoid momentum trading. Gold and silver have risen this week. But the rise has not been one way. They have been rising and falling both with successive lower prices getting higher. Day trading is difficult for jobbers and first time traders.
Gold and copper are in a neutral zone. Silver and crude oil are looking bullish at the moment. The US private ADP jobs number has beaten street expectation while the US trade deficit is at a multiyear low. Bullion’s muted reaction to the sharp fall of the euro against the US dollar itself is a confidence reinforcing sign that gold and silver will rise this year.
The central banks do not like deflation and they also do not like high inflation. Over the coming years central banks have to move away from inflation or deflation targeting policies. They also need to move away from playing with interest rates for higher economic activity. It is also high time when we stop worrying on inflation, deflation and interest rates and focus on their real cost of living. It is only when more and more people look into their actual financial position that that global central bank will forced to look beyond traditional tools for higher economic growth. Technology and global warming are changing people’s needs and perception. Its high time central banks also innovate. If they do not, then the world will witness quick asset bubble formations which can result in global central banks running out of ideas and sitting like a lame duck. The faulty global central bank policy of targeting inflation, deflation and interest rates for higher economic growth makes me believe that one should remain invested in gold and silver.
COMEX TECHNICAL VIEW
COMEX GOLD FEBRUARY 2015 – current price $1210.30
Bullish over $1208 with $1228.00 and $1257.00 price target
Bearish below $1196.00 with $1184.10 and $1167.30 as price target
Neutral Zone between $1196 and $1208
- Remain on the sidelines. There will be another wave of selling below $1208 in case gold does not break $1228 by tomorrow.
- We are against buying at current prices at the moment.
- Jobbers watch $1218 and $1208
MCX CRUDE OIL – prices in Indian rupees below
Crude oil can rise to 3230-3470 as long as it trades over 2974. The next wave of selling will be below 2974. I am against selling crude oil at current prices. One should wait for a clear direction and then go short.
Key long term support is at 2770. As long as crude oil trades over 2770, the chances of a rise to 4000-4800 will be very high.
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: Thursday, 8 January 2015 | E-Mail | Print | Source: GoldSeek.com