Asian Metals Market Update
By: Chintan Karnani, Insignia Consultants
-- Posted Wednesday, 31 October 2012 | | Source: GoldSeek.com
General market conditions
Gold
and silver are consolidating at the moment due to lack of trading
volumes from the USA. This consolidation phase will be broken and a new
range will be formed soon. The real fight between bulls and bears now
starts. At lower prices physical demand will prevent prices from a crash
while technical traders will be cautious going long at current prices.
All the calculations of the US economy will now change due to hurricane
sandy. Huge amounts of steel, copper and other base metals will be
needed for reconstruction of cities affected and on infrastructure.
Temporary laborers will be needed for the same and November’s job non
farm payrolls will see a huge increase in employment. I suspect that the
federal reserve could resort to more monetary easing to meet
reconstruction needs. Insurance company’s liabilities will be high.
There
is speculation some of the areas affected by hurricane “Sandy” may not
be ready for the US presidential voting next week. Focus will now shift
to Greece and Spain and the response from the European central bank.
Intra day volatility will rise.
TECHNICAL VIEW
NYMEX CRUDE OIL (1ST CONTRACT) - current price $85.65
Bullish over $86.40 with $87.60 and $89.50 as price target
Bearish below $85.20 with $82.55 and $81.90 as price target
Break point: $87.00
- $81.92 is the key support and crude oil needs to trade over $81.92 to target $88.27 and $90.64
- A daily close below $86.00 on Friday will be bearish for crude oil in the short term.
MCX Nickel November – prices in Indian rupees below
Nickel
can rise to 987-1030 in short term as long as it trades over 820. There
will be a technical break down only if Nickel trades below 820 for
three consecutive days at any time of the year.
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.
Trade without emotions
"Print this report only if absolutely necessary. Save Paper. Save Trees."
NOTES TO THE ABOVE REPORT
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
No comments:
Post a Comment