-- Published: Tuesday, 21 April 2015 | Print | Disqus
It seems that gold and silver traders are still not convinced whether the rise will be sustainable or not. The price movement in the commodity markets and the US dollar is an indication that traders are looking for an interest rate hike in June. We have a lot of event risk in the next three weeks: (a) FOMC meet (b) UK election result (c) US April nonfarm payrolls (d) Greece debt issue resolution in the second week of May. All of them can have far reaching consequences on bullion, energies and the global currency markets. However one should use sharp dips (if any) in gold, silver and copper to invest for the second half of the year.
With every fall in silver the risk to return ratio moves in favor of the buyer. Under the worst case scenario, silver’s downside risk will be limited to the $1175-$1200 zone. For Indian silver buyers, I do not foresee physical silver prices falling below Rs.30,000 per kilogram for the rest of the year. Anything below Rs.30,000 per kilogram (if any) will be a super duper bonus for long term silver investors. Basically it is a nearly twenty percent downside risk for silver investors with every possibility of a three percent rise in the next four years.
TECHNICAL VIEW
COMEX SILVER MAY 2015 – current price $1590.00
Bullish over $1605 with $1630 and $1662 as price target
Bearish below $1586 with $1569 and $1543 as price target
Neutral Zone between: $1605 and $1586
Jobbers aggressive buy over: Buy over $1630 stop loss $1619 for $1645-$1662 and (use a strict stop loss in this call)
Jobbers aggressive sell below: There will be another wave of selling if silver trades below $1579 either in the UK session or the US session to $1569 and $1549
- Silver needs to trade over $1602 for the whole day to attract buyers.
- Bearish trend will be there (a) only if silver trades below $1587 in the UK session/US session
- Jobbers watch $1582 and $1605.00 all the time.
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: Tuesday, 21 April 2015 | E-Mail | Print | Source: GoldSeek.com
