Gold and Silver Weekly Technical Review and Commodity Tips

Information about Gold and Silver Weekly Technical Review and Commodity Tips

Published on May 11, 2014

Author: speak2earth

Source: authorstream.com

Content

PowerPoint Presentation: G old a nd S ilv e r W eekly T e ch n i cal R e view a nd C om mo dity T ips G old Com m od i ty B esi d e s, th ere are several o t h e r mar k et dyn a mics also playin g in th e m ar k e t. P o st the F ed tes t i m ony, Yellen’s c o m m e n t on t he eco n omic gro wt h a n d c on t i nu o us c u t do w n i n th e ass e t p u rchase p ro g ramme in t he US has p u sh ed th e U S D i n d ex t o r evive st r o n gly high e r from t h e m ulti w ee k ’s l o w a n d a t pres e nt tr a ding at 7 9 .7 4 1. We bel i eve U S’s resp o nse over t h e eco n omic s t a n ce may c on t i nu e to w eigh o n t he bul l ion mar k et b y w h i c h t he e n tire p r ecio u s me tal g r o u p may re m a i n u nd er p r essu re. T h e d ollars d e nom i n ated o t h e r p re c i o us m e tals also a n d li kely t h a t t h ey w o u ld ext e nd t h eir loss i n t h e near t erm b y w hi c h gold may also rema i n lower. On a c o n trary, w hile w e lo o k a t t he economic d a ta f rom t h e US f o r t h e n e x t w eek w e expect mo s t d a ta t o come pos i tive f o r t h e c o un try b y w hi c h t h e ris k y asse ts may mo ve hi g h er. No w , d eve l op i n g a r e la t i onsh i p w i t h e q ui t y a nd r i sk f ree ass e t i.e. B o n d y i el d , a n y im p r o vemen t in th e ec o nomic d a ta may d rive e qu i ties hi g h er w hile th e 1 0 y e ar b ond y i eld may p er f orm i n f er i or. I n this reg a rd w e may s e e an u nst a ble mo ve m e n t i n t h e p re c i ous me tal th a t is go l d. P o ssibly t his s ce n ario m i gh t also p ush t he go l d p r i c es high e r a n y time i n t h e near f u ture a n d b y w hi c h t h e exp e c ted do w nsid e p o t e n tial may be l imi t e d . T his may also be a risk t o ou r beari s h ou t l oo k on go l d w hile U k rai n e t e nsion may c o n ti n u e to b e a c on ce r n i n th e glo b al mar k e t. Loo k i n g at t h e a bo ve s ce n a r io w e be l ieve th e c ommod i ty may trade d o w n w hile vol a til i ty i s c er tai n ly li kely to s e e in th e un d erlyi n g. Fro m t h e d e r ivat ives fron t, w e h ave seen a m argi n al decli n e i n t h e p r i c es w hile b o th v ol u me a nd op en i n t ere st h ave also decli n e d a t a d. Th i s i n di c ates fo r th e n ear g old tr e nd may r e main l o w er w hile a n y a br u p t eve nt co uld s p oil t he existi n g t r e n d. Lastl y, w hile w e lo o k at t he im p l ied vol a tili t y o f G O LDU S D w e see t h at du e t o st eady p rice m o vemen t w i t h a b e a rish tr e nd th e vola t il i ty is l o w ering i n di c a ti n g th a t t he un d erlyi n g may r emain i n l i n e w i t h t h e existi n g t r e n d me a ni n g t h e p rices gold m ay t ra d e d o w n. As of Fri d ay t he i m plied vola t ili t y fo r G O LDUSD h ol d s a t 1 3%. Gold M c x J u n e Comm o d i ty f u tures prices w i t nessed do w ns i d e f all in th e la st w ee k . As of 9 M ay, 20 14 p rices a r e tr a di n g at 2 8 5 25, do w n b y 1% f rom t he previ o us w ee k ’s c lose. For t he w eek a h ead p rices a re exp ec t ed to r e main d o w nsid e as l o n g as 2 9 0 5 0 ho l ds. Imme d ia t e s u p po r t i s seen at 2 8 4 00 levels. B reak bel o w 2 8 4 0 0 c ou l d l ead t h e d r op to ext e nd t o w ar d s 2 8 2 0 0 l evels. For sh o rt term t r a d ers w e su ggest sell i n g at hi g h e r levels Gold W e e k ly T re n d : Si d ew ays Gold S up p o rt at 2 8 2 0 0- 2 7 8 00 Gold Resi st a n ce a t 2 9 3 0 0- 2 9 7 0 0 PowerPoint Presentation: Silver M c x J uly Sell at 4 2 0 0 0 -4 2 1 00 SL 4 2 9 5 0 T G T 4 1 3 0 0 -4 0 6 00 Si lv e r w hile th e r e w ere u ps a n d do w ns in th e w h i tish p re c io u s me tal last w ee k , a s w i t h t h e case w i t h gol d; o verall tr e nd c on ti n u e d to su p po r t n e ga tivity. Silver p rices h a v e b e e n o n a c o n ti n u es do w n t r e n d s i n ce t h e re c e nt p eak of o ver $ 2 2 p er oun ce in t he mo n th o f F e b r u a ry as p er Comex mar k e ts w hile t h e l a test low was w i t n essed in t h e p ast w eek of ar o u n d $1 9.1 0 p er oun c e. While as also st a t e d ea r lier , silver as a c omm od i t y ta k es b ro a d c u es f r o m mo vemen t in g o ld w hi c h too has b e en o n a do w n w ard sp i ral f o r lo n g ti me no w . In t h e past w ee k , w e had mai n ta i n e d a selli n g s t a n ce on t h e c o m m o d i ty w h ere in J uly mo n th C o mex p rices re c or d ed a slipp age o f 1.8 % to $ 1 9 . 20 p er o un ce me a n w hile it also u n d e r p erform e d th e mo ve as e qu a t e d to go l d c o m m od i ty w hi c h w as lower la s t w eek by n early 0 . 8%. Th e c o m modi t y did saw so me optimism s e e p i n g i n , p ar ti c ular l y in th e i ni t ial sessio n s of t ra d e th o u g h ease of ten s i ons i n U k rai n e regi o n a n d n e g a t ive m oment u m i nto t he E uro c urr e n c y p ull e d prices lower. Silver’s i n h e r e n t w ea k n ess o w i ng to s u b d u ed d e ma n d is o ne o f t he k ey r easo n s b e hi n d i ts co n t i nu e d un d erp e r fo r ma n ce n o tw i t hsta n di n g th e f a c t t h at silver d eri v es a mix of c on s um pti o n f rom i n du s trial a nd p re c i o us me tals. Wi t h t h e re c e n t i n du s trial r ela t e d da ta p oi n ts r emai n i n g st a ble to posit ive f r o m US a nd E u rope a nd b ase me t a ls too a dvan c i n g m o d er a t e l y, silver sh o uld h ave had got s o me su p po r t i n i ts p rice mo ve m e n t t h ough t h e same s ce n a rio has n o t been playin g out la t e l y . Dur i n g th e n ext w ee k , w hile t here are a n um b er of eco n o my rel a t e d u pda t es d ue f rom t h e US a n d E u r op e, w e b eli e v e most o f th e m to m a i n ta i n s t a n d st a ble to op timi s tic m e a n w hile c on ti n u e to a d d nega tiv i sm over t he B ulli o n c o m plex as a w hole i n c l ud i n g silver. W h ile c on ce r ns regard i n g p r o b lems go i n g on in U k raine rem a in as th e re are f resh t e n sio n s aris i n g a fter se p ara t i s ts g r o u p nam e d ’D o n e tsk Pe o ple’s R e pu bli c ’ ha v e as k ed f or a v o te on S u nday i.e. 1 1 th May t o b ecome an i nde p e n d e n t re p ubli c, a p r oba b l e s tri d e t o w ar d s amalgama ti o n R ussia. Don e tsk is t h e mo s t p o p ulo u s r egion of t he c o un try, w i t h 4.5 milli o n p e o ple a n d th e i n d ust r ial b ac k bon e of U k rai n e. In s u rge n ts h a v e a pp r e h e nd e d governme nt bui l di n gs in a do zen of c i t i es a n d to w n s , a n d fig h t w i t h go v ern m e n t c r o w d . It is hi g hly li k e ly th a t ten s i on is go i n g t o escala te d ur i n g t he i n i t ial d ays n e x t w eek a nd mig h t d rive som e ga i ns i n B ull i on c om p l ex. W hile b ro a d er t re n d fo r silver rema i ni n g lower, w e su ggest sell i n g t h e co m modi t y f rom hi g h er leve l s Silver M c x Comm o di t y J uly f u t u res p r i c es w i t n e s sed do w nsi de m o vem e n ts i n t he la s t w ee k . As of 9 May, 2 0 1 4 p rices a re tra d i n g a t 4 1 453, do w n b y 2 . 3% f rom t h e p rev io u s w ee k ’s c lose. Pri c es are li kely to c o n t i nu e i t s do w nsi de j o ur n e y fo r th e w eek a h e a d . K ey resist a n ce level to w a t c h f o r t h e w eek is a t 4 3 4 5 5 ( p r evio u s w eek high ), w hi c h is exp e c ted to hold th e d o w nsi de vie w . Do w nsid e p o te n t i al is seen u n til 4 1 2 0 0 l eve l s i n i t ially. A sign i fi c a n t b reak b el o w 4 1 2 00 c ould le a d t h e d r o p to e xten d to w ar d s 4 0 6 00 a n d t h en 4 0 3 00 levels. F o r sho rt term tr a d ers w e su ggest sell i n g Silver We e k ly T r e n d : D o w n Silver S u pp o rt at 4 1, 0 0 0 -4 0,0 0 0 Silver Resi st a n ce at 4 3, 0 0 0 - 4 4,2 0 0 Co mm o di t y T Ips Gold M c x J u ne Sell at 2 8 6 7 0 -2 8 7 00 SL 2 9 0 3 0 TGT 2 8 3 0 0 -2 8 0 50 SL 2 9 0 3 0

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