OTHER POINTS FOR CONSIDERATION
MOVING AVERAGES
100 DAY $1,998.20
200 DAY $2,060.00
30 DAY $1,923.30
Key long term supports are at $1773 and $1860.
Key long term resistances are at $2038-$2218 and $2512.
OUR TECHNICAL VIEW
There is a clash between long term support and short term bearish divergence in gold. The key long term support is at $1773 while short term resistance is at $1994.
Silver needs to trade over $1773 for the rest of the year to be in bullish zone.
Silver will attract huge investment demand only if it trades over $2500 for a week. Till then traders as well as investors will use every rise of exit their silver investments.
OUR FUNDAMENTAL VIEW
Silver demand will be high as long as silver trades over $1770 for the rest of the year.
The only risk to industrial silver demand is higher energy prices reducing global growth.
Trading volumes have fallen drastically in silver. Investment demand is also not there. This should reverse in the third quarter of the year.
Direction of silver prices will be the sum of = Industrial demand+Indian demand for silver+ Direction of gold prices+Direction of silver prices.
Investor sentiment is hyper bearish for silver. There are huge short position in silver. Trading Volumes are relatively low at the moment due to cyclical factors.
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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