The world is looking at trend (after federal reserve chairman’s press conference) in precious metals, base metals and all asset class. Over-hyped? Yes. Buy on crash strategy is also still very active. Very good physical demand is there and will be there post FOMC. Bear trend will be there if and only if buy stop losses are triggered post FOMC and till Monday.
Speculation is rife of another Chinese stimulus anytime in the next two months. Demand outlook from China can dictate trend of precious metals and base metals post FOMC. (till end August).
There is nothing special post FOMC tonight. It will just be a technical trade. A technical breakdown tomorrow and till Monday is needed for a sustained short term bearish trend. If not then the reversal to bullish will be much quicker than the most optimistic technical trend.
Battle of short-term bears versus long term bulls. This year long term bulls have overrun short term bears. Everyone knows the technical support in case of sell off in precious metals and base metals. Most of use the same technical. There can be significant overshooting and/or undershooting from commonly used technical.
Spot Silver – intraday view (current price $29.38)
- Spot silver has to trade over $28.83 to rise to $30.11 and $30.53.
- Mild sell off will be below $28.83.
- Quick rise will be there if spot silver trades over $29.58.
- Silver will also crash if it trades below $29.83 post FOMC and till tomorrow close.
Disclaimer
- The investment ideas provided is purely independent view point and are solely for collective learning and for academic interests. There is no commercial benefit accruing or have deemed to accrue to me out of providing such investment ideas.
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Disclosure: I trade in India's MCX commodity exchange. I have open positions in India's MCX commodity future. I do not trade in CME future or OTC spot gold and spot silver.
NOTES TO THE ABOVE REPORT
- ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED
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- PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
- PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
- THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
- ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.
- ALL NEWS IS TAKEN FROM REUTERS NEWSWIRES.
- TECHNICAL ANALYSIS IS DONE FROM TRADINGVIEW SOFTWARE
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