04 January 2013
Commodity market
Gold lost its bullish momentum at the door-step of set resistance/sell zone at 1690-1705 (high at 1689.60) for sharp reversal into other end of set support/buy zone at 1635-1650 (low at 1645.24), thus posting one more round of back-and-forth moves within the set range of 1635/1650-1690/1705. What next? The cues are mixed but tone remains mildly bearish for extension below 1635 into 1590 while below 1670. For today, let us watch consolidation at 1620/1635-1670/1680. The trading strategy is to trade end-to-end. Strategic players can stay away for break-out and it would be good risk-reward to sell in 2 lots at 1680/1695 and buy in 2 lots at 1610/1595 with tight affordable stop.
NYMEX Crude is in consolidation mode at “inner ring” of 91.50-93.50 (92.14/93.30) within the 90-95 trading range. The absence of sharp reversal despite strong rally in the USD Index is concern for the bears. The immediate term is risk for extension of this relief rally beyond 93.50 into 98.50 before sharp reversal. For today, let us watch consolidation at 89.50/91.00-93.00/94.50. The trading strategy is to trade end-to-end by selling in 2 lots at 93.50/95.00 and buying in 2 lots at 90.50/89.00 with tight affordable stop.
Have a great day and Good luck.....................Moses Harding
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